Fertilize Your Portfolio With These Stocks: Potash Corp./Saskatchewan (USA) (POT), Mosaic Co (MOS), Intrepid Potash, Inc. (IPI)

In their presentation at the BMO Metals and Mining Conference the company discussed that lower demand years were generally followed by higher demand years. Whether that rebound year is this year or next is of little consequence longer term. Ultimately the longer term upward trend for fertilizer demand and prices has the most impact for investors.

With their position as de facto leader of the Canadian fertilizer cartel Canpotex and their foreign subsidiaries, Potash Corp./Saskatchewan (USA) (NYSE:POT) is well positioned to capitalize on global fertilizer demand growth. Potash is diversified beyond potash and is a significant producer of nitrogen and phosphates as well. For a little icing on the cake, Potash pays a nice dividend of about 2.8%.

Another member of the Canpotex cartel with strong fundamentals and geographic reach is Mosaic Co (NYSE:MOS). With assets and markets in South America, the company is poised to benefit from the development of Brazil and other South American nations. Mosaic Co (NYSE:MOS) also has existing relationships with China and India in Asia which will allow it to grow there as more people demand higher protein food.

Mosaic is strong in both potash and phosphate which gives it reach into the rotational nature of agriculture. The company is also developing a specialty fertilizer called MicroEssentials which incorporates patented technology for efficient delivery of crop nutrition via one granule. MicroEssentials, branded as a next generation fertilizer, potential is substantial as more nations seek greater efficiency in their agricultural complexes.

The Bottom Line

Investors with long-term outlooks who consider the demographic and agriculture trends will be well served to own one or more of these wonderful companies. Currently, each company’s share price is well off of recent highs and may indicate a good entry price.

The article Fertilize Your Portfolio With These Stocks originally appeared on Fool.com and is written by Kirk Spano.

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