Q: Is the dividend on Nutrien safe?
5i Research Answer:
Keep in mind no dividend is guaranteed. NTR raised its dividend in February, implying some confidence from management. The balance sheet is leveraged, but not really by a worrying about (2x cash flow). It is a cyclical industry but some earnings growth is expected next year. Payout ratio is only 20% based on operating cash flow. This all implies the company does not 'need' to cut and we would consider the dividend fairly secure overall.