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PotashCorp raising dividend on bright outlook, strong Q4 demand

PotashCorp raising dividend almost nine per cent next quarter on bright outlook, strong demand for its fertilizer products. File / Global News

SASKATOON – Potash Corporation of Saskatchewan Inc. (TSX:POT) is raising its dividend almost nine per cent starting with its next quarterly payout in May in a sign of the Saskatoon-based company’s confidence in future cash flow and demand for its fertilizer products.

The higher shareholder payout, which rises to 38 cents per share from 35 cents, was announced as PotashCorp reported it had $407 million of net income in the fourth quarter of last year. That’s up more than 75 per cent from a year earlier.

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Profit for the three months ended Dec. 31 amounted to 49 cents per share, bringing the full-year total to $1.82 per share or $1.5 billion – at the high end of the company’s guidance to investors.

PotashCorp said demand was strong in all key markets during the fourth quarter, especially offshore, and the trend is continuing.

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It’s estimating the first quarter’s profit will be about the same in a range from 45 to 55 cents per share and that 2015 earnings will be higher than last year’s at between $1.90 to $2.20 per common share.

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