SASKATOON, Saskatchewan - Nutrien (TSX:NTR) Ltd. (TSX:NYSE:NTR, NYSE:NTR), a major provider of crop inputs and services, has declared a quarterly dividend increase and announced a share repurchase plan. The company's Board of Directors approved a dividend of US$0.54 per share, payable on April 11, 2024, to shareholders on record as of March 28, 2024. This marks a two percent rise from the previous dividend announced on November 1, 2023, resulting in an annualized payout of US$2.16 per share.
In addition to the dividend increase, Nutrien has received authorization to repurchase up to five percent of its issued and outstanding common shares over the next twelve months through a normal course issuer bid (NCIB), pending acceptance by the Toronto Stock Exchange.
Shareholders based in Canada will receive their dividends in Canadian dollars, using the Bank of Canada's daily average exchange rate on March 28, 2024, while those outside Canada, including the United States, will receive payments in US dollars. Shareholders have the option to change their dividend payment currency and may enroll for direct deposit by contacting Computershare Investor Services Inc.
The dividends issued by Nutrien are designated as eligible dividends under subsection 89(14) of the Income Tax Act (Canada), which may provide tax benefits to certain shareholders.
Nutrien emphasized that these financial decisions align with its strategy to create long-term value for its stakeholders and reinforce the strength of its integrated business model. The company is recognized for its global network aimed at serving the agricultural sector and contributing to sustainable food production.
These forward-looking statements, including the anticipated dividend payments and the share repurchase plan, are subject to various risks and uncertainties, and actual results may differ materially. Nutrien cautions investors not to place undue reliance on these projections.
This financial update is based on a press release statement. Nutrien has not provided further details on the NCIB's timing or the potential impact on its share price. The company's future operations and the success of the NCIB will depend on various factors, including market conditions and regulatory acceptance.
InvestingPro Insights
Nutrien Ltd. (NYSE:NTR) has recently made headlines with its dividend increase and share repurchase plan, reflecting a commitment to shareholder returns. An InvestingPro analysis reveals several key metrics and insights that could be of interest to investors considering Nutrien's financial strategies.
One of the notable InvestingPro Tips is that Nutrien has raised its dividend for 6 consecutive years, underlining a consistent approach to rewarding shareholders. Additionally, the company's management has been actively involved in share buybacks, indicating confidence in the firm's value and prospects.
From a valuation standpoint, Nutrien's current P/E Ratio stands at 11.55, with an adjusted P/E for the last twelve months as of Q3 2023 at 9.06. This suggests that the stock may be attractively priced relative to its earnings. Moreover, the company's strong free cash flow yield is highlighted by an InvestingPro Tip as a point of interest for value-oriented investors.
Despite a challenging environment, as reflected by a revenue decline of 18.55% over the last twelve months as of Q3 2023, Nutrien's dividend yield as of the end of 2023 was 4.19%, which is competitive in the current market. The company's commitment to shareholder yield is further evidenced by a dividend growth of 10.42% during the same period.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, which could provide further clarity on Nutrien's financial health and market position. To access these tips and gain a comprehensive understanding of Nutrien's investment potential, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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