Fertilizer stocks play a vital role in agriculture, providing essential nutrients to crops and increasing yields.
The global fertilizer market is expected to reach more than $240 billion by 2030, driven by increasing population, growing demand for food, and the need for sustainable agriculture practices (Statista, 2022).
The agricultural industry is also expanding, with innovations in technology and precision agriculture enabling farmers to optimize their production and reduce waste.
This presents an opportunity for investors looking to capitalize on the growth potential of the fertilizer industry.
Below, we will present the 5 Best Fertilizer Stocks to Buy in 2023!
Best Fertilizer Stocks to Buy for 2023
1. Nutrien (NYSE: NTR)
- Ticker: NTR
- Dividend Yield: 3.43%
- Market Cap: $31.62 Billion
Nutrien is the world’s largest provider of crop inputs and services, with a presence across North America, South America and Australia.
The company produces and distributes a wide range of fertilizers, including nitrogen, phosphate, and potash-based products, as well as micronutrients and specialty fertilizers.
They also offer agricultural services such as seed and crop protection products, digital solutions, and agronomic advice.
Nutrien is well positioned to benefit from the growing demand for fertilizers, particularly in emerging markets such as Asia and Africa.
2. Corteva (NYSE: CTVA)
- Ticker: CTVA
- Dividend Yield: 1.04%
- Market Cap: $41.06 Billion
Corteva Inc. is a global agriculture company that produces and sells seeds, crop protection products, and digital solutions to farmers worldwide.
The company’s portfolio includes a wide range of crop protection products, such as herbicides, insecticides, and fungicides, as well as biostimulants and micronutrients.
Corteva’s diverse portfolio and global reach make it well positioned to benefit from the growth in the fertilizer industry.
They have set ambitious goals to reduce its carbon footprint by 25% by 2030 and a commitment to developing products that promote soil health and reduce waste.
3. CF Industries (NYSE: BHP)
- Ticker: CF
- Dividend Yield: 2.38%
- Market Cap: $13.21 Billion
CF Industries is a leading producer and distributor of nitrogen fertilizers, including ammonia, urea, and urea ammonium nitrate (UAN).
The company operates in North America and has a global customer base in the agriculture, industrial, and energy industries.
Their stock price saw a meteoric rise from the 2020 lows, more than quadrupling in value in less than 3 years.
However, the stock is down nearly 20% YTD, as the company EPS and margins have came in below analyst expectations.
Despite the company facing pressure operating in a high interest rate environment, the future looks bright for CF Industries due to their strong free-cash-flow and impressive profit margins standing just under 30%.
4. FMC Corporation (NYSE: FMC)
- Ticker: FMC
- Dividend Yield: 2.10%
- Market Cap: $13.83 Billion
FMC Corporation is a global agricultural sciences company that produces and sells crop protection, plant health, and professional pest control products.
The company’s portfolio includes a wide range of insecticides, herbicides, and fungicides, as well as biostimulants and micronutrients.
Some of FMC’s notable products include Altacor, Anthem, Avaunt, and Beleaf.
With a low payout ratio of 34.37% and strong free-cash-flow, FMC is a great fertilizer stock for dividend oriented investors.
5. The Mosaic Company (NYSE: MOS)
- Ticker: MOS
- Dividend Yield: 2.15%
- Market Cap: $11.82 Billion
The Mosaic Company is a leading producer and marketer of phosphate and potash fertilizers in the United States, as well as specialty fertilizers and animal feed ingredients.
The company operates in North and South America, through a variety of international distribution networks.
Mosaic is well positioned to benefit from the increasing demand for fertilizers, particularly in the United States, where the company has a majority market share.
With over $1.6 billion in free-cash-flow, Mosaic has the opportunity to expand in different geographies and further increase their market share in the United States.
Fertilizer Stocks: Final Takeaway
Fertilizer stocks are poised for growth in 2023 and beyond, driven by increasing demand for food, population growth, and the need for sustainable agriculture practices.
Nutrien, Corteva, CF Industries, FMC Corporation, and The Mosaic Company are well positioned to capitalize on this growth given their strong track record in the agricultural sector.
As with any investment, it’s important to conduct thorough research and consult with a financial advisor before making any decisions.
However, these five fertilizer stocks represent promising opportunities for investors looking to capitalize on the growth potential of the fertilizer industry.
Disclosure: The author holds no position mentioned in this article. Freedom Stocks has a disclosure policy.
