Nutrien - Poised To Feed A Growing World Population

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About: Nutrien Ltd. (NTR), Includes: KPLUY, SQM
by: Steve Brodrick
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Steve Brodrick
Value, dividend investing, long-term horizon
Summary

Projections for global population growth and food production needs indicate compelling demand growth for fertilizer products.

The world’s population will grow by 2.5B people by 2050, implying that food production per acre of arable land will need to increase with the assistance Nutrien’s fertilizer products.

Nutrien has tremendous growth opportunities in its retail division including a build out of its South American operations and margin improvements from selling proprietary products.

Average analyst price targets indicate that the stock has 28% upside potential, offering investors a total return potential of ~31%.

Targeting a payout range of 40-60%, Nutrien recently announced a 7.5% dividend increase, signaling management’s confidence in the business’s ability to generate growing free cash flow.

Investment Thesis

Nutrien Ltd. (NTR), the world’s largest producer of crop inputs is uniquely positioned to benefit from global population growth and the subsequent demand for food production. The global population trends driving