Thursday, December 31, 2015

Recent Buy - Agrium Inc. (AGU)

28th December 2015 I Bought 25 shares of Agrium Inc. at $ 91.51 per share plus commission.

Agrium Inc. (Agrium), incorporated on December 21, 1992, is a Canada-based producer and marketer of nutrients for agricultural and industrial markets. Agrium is a retailer of agricultural products and services in the United States, Canada, Australia, Argentina, Brazil, Chile and Uruguay and a multi-national producer and wholesale marketer of nutrients for agricultural and industrial markets. The Company operates through its two business units: Retail and Wholesale. Agrium Wholesale owns 16 production facilities in North and South America across the nitrogen, potash and phosphate spectrum; two mines; and a distribution and storage network throughout North America and internationally through Agrium Europe. Agrium Retail operates 57 terminals, 8 plants and 18 distribution centers in North and South America, as well as Australia. The company was formerly known as Cominco Fertilizers Ltd. and changed its name to Agrium Inc. in 1995. Agrium Inc. was founded in 1931 and is headquartered in Calgary, Canada.

AGU has a 4 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 21.2, 121.2, 94.1 and 39.3. (Canadian Dividend All-Star List) Agrium Inc. now pays dividends of $0.875 per share normally in January, April, July and October. The dividend payable on Agrium's common shares is declared in U.S. dollars.


AGU's earnings per share has varied a lot and there was a big dip in 2009 and from 2013 AGU's EPS is again on the decline, but in spite of the dividend has increased very much, due to a reasonable payout ratio. I look forward to the dividend growth rate to slow down considerably in the future and stabilizing at around 10 per cent per year.

Some months ago Roadmap2Retire made a good analysis of Agrium Inc. If you are interested, read more here.
Another positive view of the company can be found here

Details of my purchase:

Some ratings for AGU:

    Yahoo:  Mean Recommendation 2.5, 1y Target Est $108.10
    Reuters: Mean Rating 2.37
    Morningstar:  (***)

At today's exchange rate, this purchase 25 shares of AGU will increase €59.58 ($65.19) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to €9650.00. With purchase price $91.51 plus commission ($16.47) my starting yield on cost is 3.80%. I used to this purchase my Nordic equity broker (Nordnet), because for it had accumulated a few dollars. The following purchases I will do again through my other broker (Lynx), because the fees there are much lower.

Click here to see my portfolio. 

Thanks for stopping by and Happy New Year!

Full Disclosure: Long AGU

1 comment:

  1. Nice purchase, Hawk. Ive been a shareholder in AGU for over a year now...and luckily picked up the shares before a position by ValueAct was announced. Ive been waiting ever since for a pullback or correction to add more.
    Really like the prospects and the diversification offered by the company.

    Best wishes