Long-term trend favours Nutrien

Article Excerpt

Fertilizer prices remain volatile as world markets adjust to global sanctions on Russia and Belarus (major exporters of potash) following the invasion of Ukraine. Despite the current uncertainty, Nutrien remains a great way for investors to profit from the long-term need for more and better food. The company also gets most of its revenue from a network of retail stores that supply farmers with a variety of their needs. That cuts Nutrien’s exposure to bulk fertilizer prices and supports future dividend hikes. NUTRIEN LTD. $99 is a buy. The company (Toronto symbol NTR; Cyclical-Growth Payer Portfolio, Resources sector; Shares outstanding: 520.2 million; Market cap: $51.5 billion; Dividend yield: 2.9%; Dividend Sustainability Rating: Above Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers: it ships about 27 million tonnes annually. The company took its current form on January 1, 2018, through the merger of fertilizer producer Agrium (old symbol AGU) and its rival Potash Corp. of Saskatchewan (old symbol POT). At the time, Potash Corp. investors owned…