Nutrien still has long-term appeal

Article Excerpt

NUTRIEN LTD. $50 is a buy. The company (Toronto symbol NTR; Cyclical-Growth Payer Portfolio, Resources sector; Shares o/s: 569.2 million; Market cap: $28.5 billion; Dividend yield: 4.7%; Dividend Sustainability Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers. It also sells seeds, fertilizer and other agricultural products through 2,000 retail stores in seven countries. Starting with the October 2019 payment, the company increased your quarterly dividend by 4.7%. Investors now receive $0.45 U.S. a share instead of $0.43 U.S. The new annual rate of $1.80 U.S. yields 4.7%. In the three months ended June 30, 2020, Nutrien’s revenue fell 3.2%, to $8.42 billion from $8.69 billion a year earlier (all amounts except share price and market cap in U.S. dollars). That drop was mainly because lower potash prices offset higher volumes in North America during the spring planting season. Earnings fell 8.2%, to $1.45 a share from $1.58. Due to lower demand and prices for nitrogen fertilizers and ammonia, Nutrien expects to earn between $1.50…