Three more high-quality Resource buys

Article Excerpt

We continue to recommend all investors maintain some exposure to the Resources sector—typically about 20% of your total portfolio. That’s mainly because resource stocks act as a hedge against inflation. To further cut your risk, investors should stick with producers, such as the three we analyze below, with large reserves and low-cost operations. We see all of them as high-quality buys for long-term gains. NUTRIEN LTD. $73 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 494.5 million; Market cap: $36.1 billion; Price-to-sales ratio: 0.9; Dividend yield: 4.0%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of potash, nitrogen (made from natural gas) and phosphate fertilizers. It ships about 27 million tonnes annually. Nutrien also sells seeds, fertilizers and agricultural products to farmers through some 2,000 stores spread across the Western Hemisphere and Australia. Potash prices spiked after Russia’s invasion of Ukraine in February 2022. Russia, and its ally Belarus, are major producers of potash and economic sanctions restricted…