One Huge Dividend Play

CVR Partners owns and operates a nitrogen fertilizer business based in Coffeyville, Kansas. According to the company, it's the only nitrogen fertilizer manufacturing operation in North America that uses a petroleum coke gasification process to produce its fertilizer. The company is moving ahead with a two-year plant expansion that will increase its production of urea ammonium nitrate by 50% per year. The company also produces lower-margin ammonia. CVR Partners sells its products primarily in the higher-margin agricultural market, whereas competitors such as PotashCorp (NYSE: POT ) , Agrium, and Yara make substantial sales of non-nitrogen fertilizers to the lower-margin industrial sector. Because nitrogen must be added to crops each year, such fertilizers provide more stable demand relative to other key nutrients such as potassium and phosphate.... Read more