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CF Industries Quadruples Dividend; Posts Record Q2 Sales (CF)

Fertilizer maker CF Industries Holdings, Inc. ( CF ) late Thursday posted much better-than-expected second quarter earnings and increased its dividend payout fourfold, sending its shares higher in aftermarket trading.

The Deerfield, IL-based company reported second quarter net income of $487.4 million, or $6.75 per share, up from just $105.1 million, or $1.54 per share, in the year-ago period.

Revenue rose 38% from last year to $1.8 billion.

On average, Wall Street analysts expected a much smaller profit of $5.33 per share, on lower revenue of $1.76 billion.

CF's board of directors also announced a 400% increase in its quarterly dividend payout, from 10 cents to 40 cents per share. The new dividend will be paid on Aug. 29 to shareholders of record as of Aug. 15. The company also plans to buy back up to $1.5 billion worth of its own stock through the end of 2013.

CF Industries shares rose $4.76, or +3.4%, in premarket trading Friday.

The Bottom Line

Shares of CF Industries ( CF ) will now have a 1.13% dividend yield, based on last night's closing stock price of $141.59 and the new dividend hike. The stock has technical support in the $130 price area. If the shares can firm up, we see overhead resistance around the $150-$155 price levels.

CF Industries Holdings, Inc. ( CF ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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