A lot of us have likely heard the expression that it takes money to make money. And while that’s true, it’s not that you need a lot of money to make money. In fact, just $1,000 could put you well into the green in the years to come. And to be clear, saving up $1,000 would mean just putting aside $83 per month!
Alright then, so now you have that $1,000, what do you do with it? Today, we’re going to go over one company that has a solid future. And what’s more, it offers a strong share price – and a dividend to boot.
Consider Nutrien stock
Investing in Nutrien (TSX:NTR) could be a strategic move for those with a limited budget of $1,000, given its strong market position, positive financial outlook, and substantial dividend yield. Nutrien, a leading provider of crop inputs and services, recently reported its first quarter 2024 results, showcasing a robust financial position.
Despite a decrease in net earnings compared to the same period in 2023, the company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.1 billion – plus, adjusted net earnings per share of $0.46. This decrease was primarily due to lower fertilizer selling prices, partially offset by increased retail earnings and higher sales volumes of fertilizers.
Nutrien offers a competitive dividend yield, with a recent quarterly dividend of $2.96 per share. That dividend yield therefore comes to 4.3% as of writing, well above its five-year average of 3.4%. This makes it an attractive option for income-focused investors looking to reinvest dividends or supplement their income.
What’s more, analysts are certainly on board. Nutrient stock currently has a “Buy” recommendation and consensus price target of $89.46. That would provide a potential upside of 30% as of writing!
Outlook is strong
Now shares of Nutrien stock are down right now by about 17% in the last year as of writing. And that comes from higher costs and lower potash production. However, as that changes, the company still has a strong future ahead.
Nutrien operates through four main segments: Retail, Potash, Nitrogen, and Phosphate. Its integrated business model and strong market presence in distributing crop nutrients, crop protection products, seeds, and other agricultural products position it well to benefit from global agricultural trends. The company’s recent financial data show positive trends in annual revenue, net income, and return on equity.
With its substantial market cap and stable institutional investor confidence, Nutrien is well-positioned for long-term growth. Its diversified product offerings and global reach provide a hedge against regional market fluctuations, making it a safer bet in the volatile agricultural sector.
Bottom line
So, for Canadian investors with $1,000 to invest, Nutrien represents a compelling opportunity. Its strong financial performance, attractive dividend yield, positive analyst outlook, and strategic market position make it a worthy consideration for both growth- and income-focused portfolios. As always, conduct your own thorough research or consult with a financial advisor to ensure alignment with individual investment goals and risk tolerance.
