2 Long-Term Fertilizer Stocks
TS is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
When it comes to long term investing, personally I look for agriculture related stocks. My reason for this not only comes from my agriculture back ground, but from the understanding that as long as we humans live we are going to eat. We have to, there is no alternative. With that in mind, I feel these two stocks offer excellent long term potential for growth.
My first pick is CVR Partners LP (NYSE: UAN), a Deleware limited partnership formed by CVR Energy Inc. (NYSE: CVI). What's the number one reason I like this company? It's cheap! It has a current price of $20.01, and that is right on the 52-week low of $17.76 per share. If you have read my book Beat Your Broker, you understand that I am always looking for bargain stocks near their 52-week low. Finding stocks like this is more fun than hitting bingo down at the bingo parlor. UAN has a total revenue of $323.8M , and a profit margin of 40.06%. UAN also has a dividend yield of 10.44%. This dividend payout is so crazy why would you not want to own this stock just for the dividends alone is beyond me. This is a new company and I believe they have a great future ahead of them.
The next pick is Potash Corporation of Saskatchewan Inc. (NYSE: POT). Like its competitor, POT is near its 52-week low of $37.49, at a price of $37.53 per share. POT has a total revenue of $8.3B and a profit margin of 34.40%. They also pay out a quarterly dividend at a yield of 1.49%. This stock has an excellent long term pattern for over twenty years and has room to grow. It is a great bargain right now for a one time investment, or if you are the invest consistently every month or year investor. This stock is one you may want to add to your portfolio.
I believe they are both good stocks for long-term growth and they pay out dividends as a bonus. With UAN you have an opportunity to get in on a young company that will grow, and I feel that is key to the long term. POT has a long history of growth and I believe there is excellent potential for future growth as well. As always though, I personally cannot offer a guarantee on any stock venture, so never invest money you cannot afford to lose.
TSDavis75 has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.
