Unique Assets: PhosAgro's Dividend Whets Our 'Apatite'

Seeking AlphaDividend Ideas | Basic Materials | RussiaUnique Assets: PhosAgro's Dividend Whets Our 'Apatite'Nov. 12, 2020 2:15 PM ET|| About: Public Joint-Stock Company PhosAgro (PHOJY), Includes: CF, MOS, NILSY, NTRby: Silver Coast ResearchSilver Coast Research Small-cap, foreign companies, Commodities, Dividend InvestingSummaryRussia's PhosAgro is one of the world's leading phosphate producers, and a large producer of nitrogen fertilizers.
The company produces phosphates from apatite, a mineral extracted from its low-cost, high-grade mines in the Kola peninsula.
With its low toxicity, apatite provides a competitive advantage in export markets where environmental requirements are becoming more stringent, such as the European Union.
The stock trades at an attractive valuation, though investors must of course deal with an investment in Russia.
A generous dividend policy, whereby a minimum of 50% of net profit has to be distributed, rewards income investors.
This article is part of a series covering some of the world’s most outstanding assets in the field of natural resources, and the investable companies that operate these assets. Exceptional assets give these companies a competitive advantage which usually translates into high margins and an ability to weather periods of depressed commodity prices. A unique asset alone does not guarantee success, though, as we will see in some cases.
We started this series with Nornickel (OTCPK: NILSY), and today's focus will be on another Russian company: PhosAgro (OTC:PHOJY). Like Nornickel, PhosAgro's operations are backed by exceptional natural resources, specifically its apatite deposits in the Kola peninsula, from which phosphate fertilizers are produced.
As a result, PhosAgro enjoys excellent profitability, and its high dividends make it an interesting proposition for investors looking for diversification into the agricultural space, and willing to invest in Russia.
Note: PhosAgro... Read more