Canadian Agricultural stocks represent an untapped, if not lucrative, segment of the market for for long-term investors. Prospective investors that haven’t considered this under-the-radar segment should take a closer look at these stocks.
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Nutiren
Few investors may be familiar with Nutrien (TSX: NTR) despite it being one of the largest agricultural companies on the planet. Specifically, Nutrien is one of the largest global providers of crop inputs such as potash and fertilizers.
In terms of reach, Nutrien boasts a whopping $29 billion in global sales with operations in over a dozen countries. Nurtien’s products are served by customers in 50 countries around the globe.
The company was formed through the merger of two titans in the sector, Potash Corporation of Saskatchewan and Agrium back in 2018.
Despite its strong market share, the stock has dropped over 13% in the trailing 12-month period.
Over that same period, the company’s quarterly dividend has swelled to 4.5%, making it a solid addition for income-seeking investors.
Prospective investors should take note of the spike in prices over the past few years, first as the war in Ukraine started, and then as a result of inflation. Despite this, Nutrien remains one of the best Canadian agricultural stocks for investors to consider right now.
AG Growth International
AG Growth International (TSX: AFN) is yet another option for investors looking at Canadian agricultural stocks to consider. Winnipeg-based AG growth touts itself as a global food security pure play.
Specifically, the company provides both solutions and equipment for processing, transporting, and storing food. AGI boasts 28 manufacturing facilities across North America, Asia, and Europe.
In total, the company generates its revenue from both farm and commercial segments. Examples of this include the conveyors, boilers, and silos that support the agricultural segment.
Like Nutiren, AG Growth offers investors a quarterly dividend, but AG Growth’s yield comes in at just 1.2%. That being said, AG Growth has paid out that dividend without fail for over a decade, making a solid option for long-term investors.
Beyond that stable payout, AG Growth, like Nutrien is an extremely defensive investment to consider that can counter significant market volatility. That defensive appeal is one of several reasons why the stock has soared over 40% during the past two years.
That stellar growth comes despite the company missing expectations on revenue during the most recent quarter. During that most recent update, AG Growth posted revenue of $352 million, reflecting a 10% drop over the prior year.
Despite coming in lower than expected during the most recent quarter, AG Growth still has plenty of growth potential. The company continues to forecast a record-breaking full-year performance, and its third-quarter results will be announced next week.
In other words, AG Growth remains one of the Canadian agricultural stocks to consider buying right now.
Canadian agricultural stocks to buy
Both Nutrien and AG Growth are some of the best Canadian agricultural stocks to buy. This is thanks to not only their defensive positions, but also superb long-term growth potential.
In my opinion, a small position in either of these great Canadian agricultural stocks would be a great addition to any well-diversified portfolio.
