Agrium Inc. (TSX: AGU) is a Calgary, Canada-based producer and distributor of agricultural products and services. The Company categorizes its segments within the Retail and Wholesale business units.
Fertilizer companies such as AGU have come under pressure since the breakup of one of the cartels operating in the potash market in the summer of 2013. However, the long-term outlook for fertilizer companies is extremely bullish, given the need to feed the ever growing global population. Indeed, AGU offers significant upside potential for long-term investors. However, income investors should also consider AGU because of its attractive yield.
Agrium currently offers a yield of 3.85%. The company has an excellent track record when it comes to dividend payments. Over the last five years, the company has consistently raised its dividends.
Agrium reported its first-quarter financial results earlier this month. The company reported a profit of just $7 million, or $0.05 per share. This was significantly below the profit posted for the same period in the previous year. For the same period last year, AGU had a profit of $14 million, or $0.08 per share. AGU’s revenue for the quarter fell 4.9% on a year-over-year basis to $2.73 billion.
