5.2% Dividend Stock To Watch - Nutrien Stock
Nutrien Dividend Stock Analysis - A stock to watch!
THE KEYS WHEN IT COMES TO NUTRIEN:
- Low cost potash producer with 6 million tonnes production ramp up option at extremely low cost and 50 years of production ahead - gives a margin of safety, also the high margins protect the dividend
- Integrated with retail after the merger with Agrium contributing $650 million in synergies - the retail segment is not as volatile as the fertilizer segment which gives also more stability to the dividend
- $2 billion cash flow at the bottom, or possible bottom, of the fertilizer cycle. Even if cash flows fall to just $1 billion, that is what they pay out for dividends, thus still some room left
- Good distributions to shareholders and sound balance sheet - strong buybacks and dividends from free cash flows
- Possible growth coming from potential higher fertilizer pricing but also from operations as the constantly invest for growth. This could be a long-term compounder and dividend growth stock. Don't expect the dividend to grow linearly because the business isn't such, but it can grow
- Potash is an oligopoly with 9 global players playing the prisoners dilemma game with China and India on pricing and production rates
- Global demand is likely to grow but production growth has also a lot of potential. However, expansion is not cheap
- The market is expecting lower for longer potash prices that would put pressure on the company and perhaps lower dividends
- The trend is for an increase in demand for potash over the long-term.
- Stock is at multi decade lows.
- To make it a great stock to buy, a low risk high reward one, the market cap needs to be around $12 billion! So, depending on your risk appetite, see whether it is a stock to buy or a stock to watch.
Want to know more about my research and portfolios? Here is my independent stock market analysis and research! STOCK MARKET RESEARCH PLATFORM (analysis, stocks to buy, model portfolio)
https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform
Nutrien stock analysis: https://sven-carlin-research-platform.teachable.com/courses/335443/lectures/17258754
Sign up for the FREE Stock Market Investing Course - a comprehensive guide to investing discussing all that matters: https://sven-carlin-research-platform.teachable.com/p/stock-market-investing
I am also a book author:
Modern Value Investing book:
https://amzn.to/2lvfH3t
Check my website to hear more about me, read my analyses and about OUR charity. (YouTube ad money is donated)
www.svencarlin.com
Listen to Modern Value Investing Podcast:
https://svencarlin.com/podcasts/
I am also learning a lot by interning with my mentors: dr. Per Jenster and Peter Barklin at the Niche Masters fund.
http://nichemastersfund.com
#stocktobuy #stocks #stockmarket
Видео 5.2% Dividend Stock To Watch - Nutrien Stock канала Value Investing with Sven Carlin, Ph.D.
THE KEYS WHEN IT COMES TO NUTRIEN:
- Low cost potash producer with 6 million tonnes production ramp up option at extremely low cost and 50 years of production ahead - gives a margin of safety, also the high margins protect the dividend
- Integrated with retail after the merger with Agrium contributing $650 million in synergies - the retail segment is not as volatile as the fertilizer segment which gives also more stability to the dividend
- $2 billion cash flow at the bottom, or possible bottom, of the fertilizer cycle. Even if cash flows fall to just $1 billion, that is what they pay out for dividends, thus still some room left
- Good distributions to shareholders and sound balance sheet - strong buybacks and dividends from free cash flows
- Possible growth coming from potential higher fertilizer pricing but also from operations as the constantly invest for growth. This could be a long-term compounder and dividend growth stock. Don't expect the dividend to grow linearly because the business isn't such, but it can grow
- Potash is an oligopoly with 9 global players playing the prisoners dilemma game with China and India on pricing and production rates
- Global demand is likely to grow but production growth has also a lot of potential. However, expansion is not cheap
- The market is expecting lower for longer potash prices that would put pressure on the company and perhaps lower dividends
- The trend is for an increase in demand for potash over the long-term.
- Stock is at multi decade lows.
- To make it a great stock to buy, a low risk high reward one, the market cap needs to be around $12 billion! So, depending on your risk appetite, see whether it is a stock to buy or a stock to watch.
Want to know more about my research and portfolios? Here is my independent stock market analysis and research! STOCK MARKET RESEARCH PLATFORM (analysis, stocks to buy, model portfolio)
https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform
Nutrien stock analysis: https://sven-carlin-research-platform.teachable.com/courses/335443/lectures/17258754
Sign up for the FREE Stock Market Investing Course - a comprehensive guide to investing discussing all that matters: https://sven-carlin-research-platform.teachable.com/p/stock-market-investing
I am also a book author:
Modern Value Investing book:
https://amzn.to/2lvfH3t
Check my website to hear more about me, read my analyses and about OUR charity. (YouTube ad money is donated)
www.svencarlin.com
Listen to Modern Value Investing Podcast:
https://svencarlin.com/podcasts/
I am also learning a lot by interning with my mentors: dr. Per Jenster and Peter Barklin at the Niche Masters fund.
http://nichemastersfund.com
#stocktobuy #stocks #stockmarket
Видео 5.2% Dividend Stock To Watch - Nutrien Stock канала Value Investing with Sven Carlin, Ph.D.
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26 мая 2020 г. 12:00:18
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