March 08, 2013 at 10:51 AM EST
If Potash Prices Have Hit the Floor, Fertilizer Stocks Could Rebound (POT, AGU, MOS)

Analysts at Berenberg said on Friday that potash price might have reached a bottom; there is limited downside for the rest of 2013. If true, it could mean good things for the stock prices of Potash Corp (POT), Agrium Inc. (AGU) and Mosaic Co (MOS).

Berenberg analyst Gunnar Cohrs commented, “More markets in the key region of Southeast Asia are accepting the new spot price levels, providing additional support to the thesis that potash prices have reached a floor and that there is now limited downside risk going further into 2013. Only India remains problematic: there, the market is still waiting for news on the subsidy policy for fertilisers, which many market participants hope will reduce the imbalance it has created between the prices of different types of fertilisers. As the government has already set its budget, we expect some news over the next few weeks.”

Potash Corp shares were up a fraction during Friday trading, Agrium shares were up 99 cents, or +0.95%, and Mosaic shares were up 20 cents, or +0.34%.

The Bottom Line
Shares of Potash Corp (POT) have a dividend yield of 2.81% based on Friday’s intraday trading price of $39.85 and the company’s annualized dividend payout of $1.12 per share. Shares of Agrium (AGU) have a dividend yield of 0.96% based on Friday’s price of $104.55 and the company’s annualized dividend payout of $1.00 per share. Mosaic (MOS) have a dividend yield of 1.68% based on Friday’s price of $59.46 and the company’s annualized dividend payout of $1.00 per share.

Potash Corp (POT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars. Agrium (AGU) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Mosaic (MOS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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