2024-02-06 05:20:31 ET
Summary
- CF Industries' dividends (18 years on the trot) have played a key role in facilitating a 1.4x differential between the total return and price returns since inception.
- CF's annual EBITDA and revenue are poised to drop every year through FY25.
- The Company intends to fulfill a $3 billion buyback program that expires in December 2025.
- In light of these conditions, we explore how safe the dividend is.
- We close with some thoughts on the technicals and the valuations.
Introduction
CF Industries Holdings, Inc. ( CF ) is a large-cap stock keenly noted for its expertise in nitrogen products, which are primarily used by the agricultural sector. CF's operations, like most other stocks from the material sector, remain susceptible to the cyclical hues that afflict its end markets. Yet still, it has remained resolute in its ability to dole out dividends, which it has been doing so, since it made its debut on the markets, back in August 2005....
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CF Industries: With EBITDA Poised To Decline Through FY25, How Safe Is The Dividend?