Mosaic Co. (MOS) said it will more than double its quarterly dividend, as the fertilizer producer looks to put its cash stockpile to use and boost shareholder returns.
The increase raises the company's quarterly payout to 12.5 cents a share from 5 cents a share and will cost the company about $127 million more a year.
The company had about $3.2 billion in cash and cash equivalents as of Feb. 29.
Mosaic and other fertilizer producers continue to paint a rosy outlook for the industry, but they have struggled in recent months amid a standoff with customers. Farmer demand has been sluggish amid high prices, and dealers have been slower-than-usual in securing supplies. Mosaic and competitors have in recent months curtailed production in response.
Last month, Mosaic reported its fiscal third-quarter profit slumped 50% as higher raw-material costs and slow farmer buying cut into its margins.
Shares were up by 10 cents at $51.27 after hours. The stock is down 33% in the past 12 months.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; firstname.lastname@example.org