5 Stocks that Paid Special Dividends in 2023

3. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 40

The Mosaic Company (NYSE:MOS) is one of the world’s leading producers of potash and phosphate. The Florida-based company also collects urea for fertilizers. In June, BofA maintained its Buy rating on the stock with a $50 price target, highlighting the company’s overall performance.

The Mosaic Company (NYSE:MOS) is one of the best special dividend stocks on our list as it has been raising its dividends consistently for the past four years. The company offers a quarterly dividend of $0.20 per share and has a dividend yield of 2.25%, as of June 21. Moreover, it announced a per-share special dividend of $0.25 in February this year.

As of the close of Q1 2023, 40 hedge funds in Insider Monkey’s database presented a bullish stance on The Mosaic Company (NYSE:MOS). The stakes owned by these funds are collectively worth over $462.5 million.

White Brook Capital made the following comment about The Mosaic Company (NYSE:MOS) in its Q1 2023 investor letter:

“The Mosaic Company (NYSE:MOS): Despite favorable midterm fertilizer dynamics, Mosaic (MOS) performed worse than expected during the quarter. Significantly, the Company began to rally in the last days of the quarter after it preannounced production at the low end of the guidance for the first quarter when market fears were for an even worse outcome.  Given March weather, particularly in the northern United States, where a significant snow pack continued to cover farmland (as of the first days of April), I expect their 1stquarter earnings call will speak to significant second-quarter demand, particularly as the weather was more favorable for fertilizer usage in early April. Prices during the second week of April for fertilizers broadly also have begun to lessen their decline despite a continued rapid decline in other feedstock commodities.

The stock has been driven by concern about destroyed 2023 demand that I believe, given the state of the world’s depleted fields, issues that demand can no longer be destroyed, only delayed, and even that may not be necessary given the rapid improvement of the US’s northern grain basket and the solid fundamentals in Brazil.  The Company continues to trade for a very cheap valuation even though it generates strong free cash flow, returns that cash flow to shareholders, and is under levered. We continue to hold our position.”