Potash Corp to split stock, raise cash dividendPosted by tjdetai on December 6th, 2015 Potash Corp (POT.TO), the world's largest fertilizer producer, said on Wednesday its board approved a three-for-one split of its common shares in a move to improve trading liquidity following a recent jump in the stock price. Potash Corp, the target of a failed billion takeover bid last year, will also raise its quarterly cash dividend from 10 cents to 21 cents a share on a pre-split basis. On a post-split basis the payout will equal 7 cents a share. "This should definitely be regarded as positive because it is a sign that the company believes in the long-term strength of the potash business," said Gleacher & Co. analyst Edlain Rodriguez. The company is the No. 1 producer of the crop nutrient potash, a mineral that comes from underground mines in the Canadian province of Saskatchewan. The outlook for potash and other fertilizers is at the strongest in years as farmers rush to maximize yields whle grain prices are at fresh highs. Shares of Potash Corp recently hit a 28-month high of 4.31 in New York. That compares with 0 offered last summer by BHP Billiton (BHP.AX), the mining giant who's hostile bid was blocked by Canada's government in November. The shares, which closed at 8.62 on Wednesday, have climbed steadily since the failed takeover. The gains reflect the company's strong performance at the end of 2010 and even more robust expectations for the coming year. Potash Corp is expected to post a big jump in profits when it reports fourth-quarter results early on Thursday, as surging grain prices have helped boost demand across the globe. Visit more:grade 2 titanium sheet Like it? Share it!More by this author |