SASKATOON, Saskatchewan - Nutrien Ltd. (TSX:NYSE:NTR, NYSE:NTR), a major provider of crop inputs and services, has declared a quarterly dividend of US$0.54 per share, with the payment scheduled for January 17, 2025, to shareholders of record as of December 31, 2024.
The company has outlined the currency exchange details for its shareholders, stating that registered shareholders in Canada will receive the dividend in Canadian dollars, calculated based on the Bank of Canada's daily average exchange rate on December 31, 2024. Shareholders residing outside Canada, including those in the United States, will receive their dividends in US dollars.
Nutrien also provides options for shareholders to change their dividend payment currency. Registered shareholders may contact Computershare Investor Services Inc. for currency election and direct deposit enrollment. Beneficial shareholders are advised to consult their brokers or intermediaries for similar options.
The dividends issued by Nutrien are designated as eligible dividends under subsection 89(14) of the Income Tax Act (Canada), which may be beneficial for Canadian tax purposes.
Nutrien emphasizes its commitment to long-term value creation, leveraging its extensive network to efficiently serve growers and invest in areas that strengthen its business across the agricultural value chain.
The information for this report is based on a press release statement from Nutrien Ltd.
In other recent news, Nutrien Ltd has been the focus of various financial firms' analyses and changes in stock ratings. Jefferies maintained a Buy rating on Nutrien, emphasizing the company's steady market position amidst complex industry dynamics, while UBS downgraded the company's stock from Buy to Neutral due to a less optimistic outlook for the agricultural market. Similarly, Goldman Sachs downgraded Nutrien's stock from Buy to Neutral, citing concerns about potential increases in bad debt expense and loss reserves from the company's Retail segment. Despite reducing its price target from $80 to $75, BMO Capital maintained its Outperform rating on Nutrien.
These recent developments come after Nutrien reported an adjusted EBITDA of $3.3 billion for the first half of 2024, driven by increased crop input margins, strong demand for potash, and reduced operating costs. Despite challenges in the Brazilian market, Nutrien raised its global potash demand forecast. The company also announced a forthcoming CFO transition, with Mark Thompson set to assume the role later in the year.
These changes reflect Nutrien's strategic moves in response to market dynamics and its commitment to maintaining its leadership in the fertilizer industry. As the company navigates these changes, investors and stakeholders can consider this information as a reflection of the company's current market conditions and industry trends.
InvestingPro Insights
Nutrien Ltd.'s recent dividend declaration aligns with its track record of consistent shareholder returns. According to InvestingPro Tips, the company has raised its dividend for 6 consecutive years, demonstrating a commitment to returning value to shareholders. This consistency is particularly noteworthy given the cyclical nature of the agricultural inputs industry.
The current dividend yield stands at 4.27%, based on InvestingPro Data, which may be attractive to income-focused investors in the current market environment. This yield is supported by Nutrien's position as a prominent player in the Chemicals industry, as noted by another InvestingPro Tip.
While the company's P/E ratio of 30.99 suggests a premium valuation, it's important to consider that Nutrien's valuation implies a strong free cash flow yield, according to InvestingPro. This could indicate that the company has the financial flexibility to maintain or potentially increase its dividend in the future.
Investors should note that analysts anticipate a sales decline in the current year, which could impact future dividend growth. However, the company is expected to remain profitable, which is crucial for sustaining its dividend policy.
For a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable for investors considering Nutrien's stock. The platform provides a total of 8 tips for NTR, offering a deeper understanding of the company's financial health and market position.
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