Nutrien: Worth Having Exposure To

Michael Duke
219 Followers
(11min)

Summary

  • Nutrien Ltd. offers a strong market presence and cost advantages in potash and nitrogen, making it a compelling value despite cyclical fertilizer price volatility.
  • The stock's 4.4% dividend yield and nearly 10% free cash flow yield provide an attractive income that is well-covered at low fertilizer prices.
  • Nutrien's conservative capital allocation during cycles and recent performance as an inflation hedge enhance its potential to enhance risk-adjusted returns in upcoming inflation shocks.
  • Technical analysis suggests the potential for a breakout, especially if fertilizer prices surprise to the upside; current valuation and dividend yield make it a compelling value investment.

Nutrien Ag Solutions Digital Office. Nutrien Ag is a producer of nitrogen fertilizer.

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Nutrien Ltd. (NYSE:NTR) is a global leader in crop inputs, operating a retail footprint selling potash, nitrogen, and phosphate fertilizers and other agricultural products. Formed through the 2018 merger of Potash Corporation of Saskatchewan and Agrium, Nutrien is the largest agricultural retailer in

This article was written by

219 Followers
I am an investment professional with a background in both equity and real estate markets. I specialize in identifying long-only opportunities that offer safe and growing dividends, aiming to outperform the broader market on a risk-adjusted return basis. In addition to managing my family's investment portfolio, I have extensive experience in real estate investment. I served as an Analyst and Acquisitions Director at a private equity real estate investment firm, where I helped successfully source over $100 million in commercial real estate investments. Prior to that, I was an Analyst on the Structured Credit Products desk of an investment accounting software firm. My emphasis on correlation across asset classes and sectors, background in economics, and passion for markets enable me to provide timely analyses and strategies for investors seeking to enhance their portfolios. I graduated from Boise State University with a degree in Economics, and minored in Applied Mathematics, but researching and investing in equity markets has been my true passion for as long as I can remember. I decided to become a contributor to Seeking Alpha to share my ideas and thoughts on markets as they evolve and provide opportunities for wealth creation. Thank you for reading and following, and I hope you find my work helpful and interesting!

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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