Updating your Cyclical-Growth Payers: Nutrien

Article Excerpt

NUTRIEN LTD. $106 is a buy. The company (Toronto symbol NTR; Cyclical-Growth Payer Portfolio, Resources sector; Shares outstanding: 520.2 million; Market cap: $55.1 billion; Dividend yield: 2.4%; Dividend Sustainability Rating: Above Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers. Nutrien last raised your quarterly dividend with the April 2022 payment. Investors now receive $0.48 U.S. a share, up 4.3% from $0.46 U.S. The annual rate of $1.92 U.S. yields 2.4%. In October 2022, the company paid $279 million U.S. for Casa do Adubo S.A. It sells seeds, fertilizer and crop protection products to farmers in Brazil through 39 locations and 10 distribution centres. Following the purchase, Nutrien will have 180 retail stores, plants and blending facilities in Latin America. The new operations will add $440 million U.S. to the company’s annual sales of $35.4 billion U.S. Nutrien expects global potash consumption in 2023 will be higher than in the past year. At the same time, potash supply from Belarus will probably fall 50% compared to…