2 Reasons To Buy Potash Now

We maintain our bullish stance on Potash Corporation (POT). As the biggest producer of high margin potash at low costs, we believe Potash is well positioned to benefit from a rebound in potash prices. We also believe that if Potash signs the proposed contracts with China by year end, its shipments for next year would be increased. Growing demand in India will also lead to higher demand for Potash. Potash is also offering an attractive dividend yield of 2.1 per cent for dividend seeking investors.

POT is trading at a forward P/E of almost 12x. It has a long term earnings growth rate of 2.6 per cent. The stock has lost 7.5 per cent of its value YTD. The company has a dividend yield of 2.10 per cent. Read full Article.