Canadian investors had likely heard about Nutrien (TSX:NTR)(NYSE:NTR) stock before the recent blow up in 2022. The TSX stock soared after sanctions were placed on Russia, which included sanctions on potash, a crop nutrient sorely needed by the world over.
What soars up, must come down
While a TSX stock like Nutrien should climb steadily over time, this scenario created a problem. Shares exploded to all-time highs of $148 per share. Then, they dropped. Hard. As of this writing, shares are down by 23% from all-time highs.
This is why many investors aren’t considering Nutrien stock right now. There was so much volatility surrounding the stock, and then the market tumbled across the board. Investors simply couldn’t put their cash into a TSX stock that may or may not return to normal. Especially considering the fact that it’s only been around since 2018.
Don’t be so quick to judge
Here’s the upside. Nutrien stock may be young, but it’s made some insane moves. Moves that have led it to become an economist favourite over the last few years. Crop nutrients remain essential, especially as the world loses arable land and populations continue to rise.
Given these factors, Nutrien stock is in a prime position to make solid cash flow for decades. While there are other crop nutrient companies, this TSX stock has managed to merge a fractured industry, employing the tried-and-true method of growing through acquisitions.
The company also had cash on hand to expand and bring crop nutrient support into the 21st century with an e-commerce arm. This proved essential during the pandemic, allowing farmers to continue boosting produce output despite the pandemic and poor weather conditions.
Buy now for the long-term
If you’ve been a long-term investor, now is a great time to buy Nutrien stock. Consider taking out some of the earnings you’ve gained over the last few years of growth and putting it towards a solid stock for even more stable growth in the future.
Honestly, a top choice I would consider is selling oil and gas stocks. These are set to decline in the years ahead, so they no longer make sense as a long-term hold. Further, in some cases, these stocks are at all-time highs, making it a great time to take out returns!
If you do go this route, I’d recommend putting your cash in Nutrien stock. This TSX stock isn’t going anywhere and is a safe choice with solid passive income. To create $1,000 in passive income right now, you’d need to take out $43,181 and reinvest it in Nutrien stock. That’s a large amount, but it creates stable passive income from dividends that you can rely on.
Bottom line
It’s a great time to look over your portfolio and figure out what’s working, and what’s not. Oil and gas no longer makes sense, but agriculture stocks will always be around. Nutrien stock could be a strong choice, especially as shares once again climb towards all-time highs. Meanwhile, you can create $1,000 today by investing $43,181 in this stock as of this writing.
