Potash Corp. of Sakatchewan Inc.
) has announced a 25% hike in its quarterly cash dividend from 28
cents per share to 35 cents per share. The dividend will be paid
on Aug 2, 2013, to shareholders of record on Jul 12, 2013. This
represents the company's fifth dividend hike since 2011.
Potash Corp. has increased its dividend based on its
confidence to generate strong cash flow in the coming years and
remains committed to escalating returns for its shareholders.
Potash Corp., which is among the prominent players in the
fertilizer industry along with
CF Industries Holdings, Inc.
The Mosaic Company
), released its first-quarter 2013 results in April. The
company's earnings of 63 cents per share in the first quarter
exceeded the Zacks Consensus Estimate of 61 cents, reflecting a
positive surprise of around 3.3%. The company posted a profit of
$556 million in the reported quarter, up roughly 13% % from $491
million (56 cents a share) recorded a year ago.
Sales came in at $2,100 million in the quarter, up 20.3% from
$1,746 million registered a year ago, and ahead of the Zacks
Consensus Estimate of $1,923 million. The year-over-year increase
was due to improved global potash demand and record first-quarter
Potash Corp. expects earnings for the second quarter and
full-year 2013 in the range of 70 cents to 85 cents per share and
$2.75 to $3.25 per share, respectively.
While Potash Corp. may gain from a recovery in fertilizer demand
in 2013, it contends with macroeconomic uncertainties and a
challenging demand scenario in India. The company is also exposed
to volatility in potash and phosphate pricing.
Potash Corp. currently retains a Zacks Rank #3 (Hold).
AGRIUM INC (AGU): Free Stock Analysis Report
CF INDUS HLDGS (CF): Free Stock Analysis
MOSAIC CO/THE (MOS): Free Stock Analysis
POTASH SASK (POT): Free Stock Analysis Report
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