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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello team -

I am a dividend growth investor. Although Agrium's actual dividend growth has been almost non-existant over the years, recently their increases have been quite impressive.

Are you aware of change in their dividend policy going forward? With a payout ratio of about 53% do you believe their dividend is sustainable in a volatile environment (they seemed to do okay in 2008-09). For a cyclical company, are you comfortable with their debt load and current ratio - 37.5% and 1.3 respectively.

Feel free to advise if any of my figures above are not correct.

Thanks for your opinion.
Read Answer Asked by James on October 06, 2014
Q: What are your thoughts on Agrium vs. Potash? Are they at attractive valuations/do you think investing in such a company is a good way to play the inevitable global population growth from a long term prospective? Also, when is the seasonal strength time for agriculture stocks and is seasonality something you take into consideration when choosing stocks.

Thanks for your thoughts!
Read Answer Asked by Arthur on September 23, 2014
Q: hello 5i:
re: question asked by John about AGU.

On the 23 May, AGUs Borger, TX plant went down for repairs. That was the second plant in two months to go down, which obviously impacts the amount of product being produced, resulting in decreased earnings. I must advise I'm a long term bull on AGU, but sold my shares some time ago due to perceived problems with execution. John, hope that helps as it may explain why share price is drifting down.
Paul
Read Answer Asked by Paul on June 02, 2014
Q: Hi Peter and Team,
I would like your opinion on Agrium (AGU.TO). Earnings looked fairly weak and it has since been slapped with analyst downgrades. I also just heard a guest on BNN indicating there may a large surplus of potash worldwide. I'd like to know if you are still positive on the stock or I should exit. Thank you!
Read Answer Asked by Mike on May 12, 2014
Q: I would like some exposure to the expected long term growth trend in agriculture. I have small positions in POT and AGU. I intend to add to both. Do you think that is prudent at these levels? AFN seems to be a specialized business, I would like to get "A" level exposure to the machinery and real estate portion of the trend. I am not finding many options in the Canadian market. Please point me in the right direction.
Your service is fantastic, and worth every penny.
Read Answer Asked by Lorne on April 21, 2014
Q: Hi Peter:
I am holding both AGU and POT
roughly equal in dollar amounts
AGU has gone up by close to 20% whereas POT has gone down by the same in my holdings, both pays a dividend
Would it be wise to sell POT and put it in AGU or buy an ETF like
COW ?
thanks for your help, great web-site!
Read Answer Asked by Michael on March 21, 2014
Q: I have a position in Potash as well as a somewhat larger position in Agrium. My thinking on Potash was long term growth as well as the dividend. I will keep the Agrium but thinking of switching from Potash to a better growth/dividend long term hold. Would you think Cineplex fits this or perhaps another suggestion.
Read Answer Asked by Donald on January 21, 2014
Q: Hello 5i. I have held MTL for the past 2-3 years and have been rewarded with growth of 25% (not including dividends). In recent weeks MTL has started slipping however and I am growing somewhat concerned with the large proportion of my portfolio dedicated to energy related stocks and infrastructure. So I'm thinking time for a change and am considering either POT or BEP.UN, both of which offer a resonable yield. I know that you are fans of BEP.UN, however I think that stocks such as POT and Agrium are on the cusp of moving up after a period in the doldrums. I would appreciate your input on my thinking,and whether you would choose POT or BEP.UN, or simply stick with MTL. Please advise. Thank you for your help.

Brian
Read Answer Asked by Brian on December 03, 2013
Q: hello 5i:
I'm a shareholder in AGU, and am having trouble deciphering their latest news release. Dividend increase looks positive and one wouldn't think the company would do that unless they thought is was feasible, but the rest of the news looks fairly downbeat. Your take?
thanks
Paul
Read Answer Asked by Paul on September 23, 2013
Q: Hello 5I Team

My question regards Agrium there is a small quarter position in an account for a retired family member. Currently the position is still up 6%. We have had the dividend go through. Reading through analyst reports and Agrium's business model we understand Potash to be an input cost. Overall AGU is trading at approx 9 times earnings.

While the position is small should we still take what profit we ca? Sit things out until global prices settle and then decide if we want to get back in?

Much appreciated in advance!

Read Answer Asked by Phil on July 31, 2013
Q: Good Afternoon Peter and Team,
I have been comparing Agrium (AGU-TSX) to Potash (POT-TSX) with a view of taking a position in the fertilizer sector. When I looked at the numbers associated with each business I noticed the net profit margin for POT is considerably higher than that for AGU. As well, growth CAP-EX spending at POT will be coming down which means free cash flow will be rising allowing for share buy-backs and / or dividend increases. POT looks like the better business and better investment. Which company would you prefer and why ???
Thank you very much for your help.
DL
Read Answer Asked by Dennis on July 23, 2013
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