Higher gas prices benefit Nutrien

Article Excerpt

NUTRIEN LTD. $86 is a buy. The fertilizer producer (Toronto symbol NTR; Cyclical-Growth Payer Portfolio, Resources sector; Shares outstanding: 570.7 million; Market cap: $49.1 billion; Dividend yield: 2.6%; Dividend Sustainability Rating: Average; www.nutrien.com) last raised your quarterly dividend in April 2021 to $0.46 U.S. a share, up 2.2% from $0.45 U.S. The new annual rate of $1.84 U.S. yields 2.6%. The stock has jumped 32% since the start of 2021. That’s partly because rising natural gas prices in Europe have forced some producers to cut the production of nitrogen fertilizers from gas. That has pushed up nitrogen prices. Higher crop prices and lower inventory levels are also lifting potash prices. Even after that jump, the stock is still attractive at just 10.8 times the company’s likely 2021 earnings of $6.41 U.S. a share. Nutrien is a buy. buy…