From The National Investor
Bolstered by a stronger-than-expected operating quarter and an earnings beat, Potash Corp. of Saskatchewan has also just announced a dividend increase; from 35 cents/share to 38 cents per share effective with the next payment in May.
The final quarter of 2014 saw a strong jump in net earnings for the company as the fertilizer market tightened. POT reported a 77% rise in quarterly profit, helped by those higher realized prices and lower costs. Net earnings rose to $407 million, or 49 cents per share, in the fourth-quarter from $230 million, or 26 cents per share in 2013’s final quarter. Year-over-year revenues rose 23.4% to $1.9 billion.
Somewhat surprisingly, agricultural-related commodities and companies have not been given their due in a world which faces a daunting task of 7 trillion mouths to feed down the road.
POT has managed to ratchet its way slowly higher from its mid-2013 lows below $30/share. It’s a company that income-oriented investors can buy and hold for the longer term.
Chris Temple, The National Investor, www.nationalinvestor.com, 847-986-6320, February 2, 2015
