Dividend Stock with a 6% Annual Yield (POT)

Potash

Good Ol' Potash Corp.

Once the rage Potash was so sexy and everyone was willing to pay up for it on the global food growth story. Those days have passed and Potash Corporation of Saskatchewan (USA) (NYSE:POT) finds it's shares under $18. POT shares haven't stopped falling in a few years and that makes the stock a 5.7% annual dividend yield.

Potash prices and demand is weak. The chart for POT tells the story. It's a sad one where it appears the growth days are over for Potash Corp. (POT).  However this depressing tale won't last forever and Mastery wants to be there when the comeback begins.

POT Potash Corporation of Saskatchewan Inc. daily Stock Chart

 

The bottom for Potash Corp looks like it occurred last month and since that time it's managed to slowly climb back. If you decided to invest in POT you are guessing the potash/fertilizer market has reached it's low. Thanks to the declining share price of POT you bank a near 6% annual dividend yield while you wait. The big question is how low can China push potash prices and when will potash prices finally stop falling?

Last month Mosaic said they expect to sell potash for $200-230 a tonne over the first three months of 2016.  Thus it's going lower people.

Potash has been a shorts dream, in the last year the stock has tanked 36%.  The short interest makes up less than 3% of the float. The same traders who cashed in on the demise will bank coin as the stock ticks higher. Mastery likes this stock as an IRA play. Buy today and check back in a few weeks/months later as the world market improves for potash. A quick look at potash prices displays why POT stock has fallen:

5 Year Potash Prices - Potash Price Chart

6 Month Potash Prices - Potash Price Chart
MASTERY Bottom Line (Ninja Style)

The lower potash prices go the more at risk to cutting POT's dividend. Nobody and I mean nobody knows when potash prices will rebound. The current expectation is that they will continue to decline but the bottom looks like it is very near.