2024-05-06 08:44:59 ET
Summary
- Nutrien share pricing has returned to 2018 levels, despite a stronger balance sheet and greater underlying asset value.
- The company offers a solid 4% dividend yield, making it an attractive choice for investors looking for both income and food-inflation hedge characteristics.
- With a resilient farm economy and the potential for oversized grain advances, Nutrien buyers may experience above-average total return performance over the next 3-5 years.
Nutrien Ltd. ( NTR ) is one of the largest and most diversified farm fertilizer manufactures in the world. The good news for investors is share pricing is back to 2018 levels (when its merger was completed and public trading began, before the pandemic), despite a much-improved balance sheet after years of strong operating profitability. In essence, the company is better positioned for the future than six years ago, both from a financial backstop and steady-growth viewpoint. Not going unnoticed, a solid 4% dividend yield is available, which should expand faster than the average S&P 500 company. Why will dividend payouts rise? Because the business serves as a great food inflation hedge in an almost certain stagflation environment after 2024 (my view)....
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For further details see:
Nutrien: A Low-Risk Total Return Pick Benefiting From Inflation