Why This Potash Producer Is a Fertilizer MVP

Need a future favourite? This dividend stock could be one of the best options.

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Nutrien (TSX:NTR) has been proving why it’s one of the most important players in the fertilizer world. Its latest results show that it’s not slowing down anytime soon. In the first half of 2025, the dividend stock pulled in $1.2 billion in net earnings, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reaching $3.3 billion. That’s thanks largely to record potash sales volumes and strong nitrogen performance.

But is there more to come? Let’s dig deeper into this top dividend stock.

What happened

Over the past year, Nutrien’s share price has climbed from its 52-week low of just over $60 to the high $70s. It even brushed past $88 earlier in the summer. That rise was underpinned by improved market fundamentals. Potash demand has stayed strong globally due to low channel inventories, solid crop economics in key regions, and contract settlements with India and China that provide pricing visibility.

At the same time, nitrogen markets have been tight, with outages and delays affecting supply. Meanwhile, ammonia and phosphate prices strengthened thanks to production issues and export restrictions in certain regions. Nutrien’s ability to keep its ammonia operations running at a record 98% rate in the first half has only amplified its advantage.

The potash business alone delivered $1.1 billion in adjusted EBITDA during the second quarter. This was supported by robust demand in North America and key offshore markets. It comes despite some regional weather challenges affecting retail sales, as the dividend stock offset those pressures with lower expenses and higher nutrient volumes in North America. Shareholder returns have remained front and center, with $800 million handed back through dividends and buybacks in the first half, showing Nutrien’s continued confidence in its cash flow.

Future focus

Looking ahead, Nutrien raised its full-year potash sales volume guidance to between 13.9 and 14.5 million tonnes, reflecting confidence that strong demand will carry through the rest of the year. Global shipment forecasts for potash are now pegged at 73 to 75 million tonnes. This comes from steady demand expected from North America, Brazil, and Southeast Asia. In nitrogen, guidance remains solid, though second-half ammonia rates will dip slightly due to planned maintenance. Retail performance should also improve as North American growers boost crop nutrient and crop protection purchases, Australia benefits from better moisture, and Brazil continues to recover from prior slowdowns.

The dividend stock also stayed disciplined with capital spending, forecasting $2 to $2.1 billion for the year, lower than last year’s outlay. The focus is on strategic investments that enhance competitiveness. This includes brownfield expansions in nitrogen and mine automation in potash. At the same time, Nutrien remains committed to keeping its balance sheet healthy, with a payout ratio that still leaves room for reinvestment.

For investors, Nutrien offers an interesting blend of stability and growth potential. The fertilizer sector can be cyclical, and lower crop prices could weigh on farmer margins. But Nutrien’s diversified product mix, global reach, and strong cost position in potash give it resilience in down cycles. The dividend yield, sitting near 3.8%, provides additional incentive to hold the stock, especially with the company’s track record of shareholder returns. Right now, a $10,000 investment could get you $381 annually.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
NTR$78.53127$3.00$381.00Quarterly$9,972.31

Bottom line

The key watchpoints will be how potash and nitrogen pricing trends evolve into 2026, and whether global supply disruptions in fertilizers continue to support margins. Currency movements, energy costs, and weather patterns will always be factors. Yet Nutrien’s scale and operational strength put it in a strong position to manage those challenges.

With management raising guidance and delivering record volumes in a challenging operating environment, the dividend stock has shown why it remains a fertilizer MVP. For investors seeking exposure to agriculture without betting on a single crop, Nutrien’s combination of earnings power, dividend strength, and global market influence makes it a name worth watching closely.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy.

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