Mosaic's Moment: Why This Inflation-Linked Stock Is Ready To Bloom

Dec. 21, 2024 10:57 PM ETThe Mosaic Company (MOS) Stock3 Comments
(14min)

Summary

  • The Federal Reserve's "higher for longer" stance on inflation and rates presents challenges but also opportunities in high-quality cyclical dividend growth stocks with strong balance sheets and pricing power.
  • Energy and agriculture sectors, particularly companies like The Mosaic Company, tend to outperform during inflationary periods due to their critical roles in biofuel production and fertilizer supply.
  • Mosaic's stock price closely tracks inflation, making it a valuable, albeit volatile, trading opportunity rather than a dividend portfolio staple.
  • Despite recent underperformance, Mosaic's position near the lower end of the cost curve and potential value amid rising inflation strengthen its investment case.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More »
Low Angle View of a Row Of Young Corn Stalks

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Introduction

On December 20, I wrote an article titled "Buckle Up Buttercup: My Warning To Dividend Investors." In that article, I discussed the high likelihood of a much more challenging market environment, as the Federal Reserve has hinted that inflation and

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This article was written by

Leo Nelissen profile picture
38.13K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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