Efficiency gains will spur its dividend

Article Excerpt

Agrium (old symbol AGU; a recommendation of TSI Dividend Advisor) completed its merger with rival fertilizer producer Potash Corp. of Saskatchewan (old symbol POT) at the start of 2018. Potash Corp. investors received 0.40 shares in Nutrien for each POT share; and Agrium investors received 2.23 shares for each AGU share. The new company is now focused on eliminating overlapping operations. That should let Nutrien achieve substantial cost savings and better compete with international fertilizer producers. Cost cutting should also provide plenty of cash for dividends. NUTRIEN LTD. $69 (Toronto symbol NTR; Cyclical-Growth Portfolio, Resources sector; Shares outstanding: 634.2 million; Market cap: $43.8 billion; Dividend yield: 3.0%; Dividend Sustainability Rating: n.a.; www.nutrien.com) sell seeds, fertilizers and other agricultural products through more than 1,500 company-owned stores across North America, South America and Australia. Those operations supply about 55% of Nutrien’s sales. The remaining 45% comes from the bulk sale of nitrogen fertilizers, potash and phosphate. Has 20,000 employees and operations in 14 countries Produces and distributes…