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Fertilize Those Dividends (POT, AGU, CF)

By Dividend.com Staff
June 22nd, 2008

Dividend stocks come in all forms, and once in a while you get to ride on board the "momentum express". That is what is happening right now to those who own fertilizer stocks. Agrium-$108.68(AGU), Potash-$230.09 (POT) and CF Industries-$166.75 (CF) are three names that we are recommending to investors right now, but they are names that need to be monitored for their volatility. Their dividend yields are paltry with Agrium at .10%, CF Industries at .24%, and Potash at .17%. But where you make up for that is the growth and just this week, RBC Capital Markets and Credit Suisse raised earnings estimates and target prices for the whole sector. Part of the reasoning was that extremely strong crop price environment should translate into continued robust demand for fertilizers. Potash fertilizer market fundamentals are expected to remain strong through 2014 given limited new capacity additions and growing demand. If you are willing to be aggressive, these dividend plays may give you the extra horsepower you may not normally be accustomed to when investing in dividend stocks. Be sure to visit our complete recommended list of the Best Dividend Stocks as well as our ratings system here. Dividend.com

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Disclaimer: Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. The author is not registered as an investment adviser. The author may or may not hold positions in the securities mentioned in this article or video. The author relies upon the "publisher's exclusion" from the definition of "investment adviser" as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.