What happened
With temperatures rising during this first week of May, investors are also warming up to shares of CVR Partners (UAN 0.87%). Besides CVR Partners reporting strong first-quarter 2023 earnings, the producer of nitrogen fertilizer products continued with its impressive rewarding of shareholders, announcing a robust distribution payment to be made later in the month.
As of 2:32 p.m. ET, shares of CVR Partners are up 13.3% since the end of last Friday's session, according to data provided by S&P Global Market Intelligence.
NYSE: UAN
Key Data Points
So what
For Q1 2023, CVR Partners booked revenue of $226.3 million, a year-over-year increase of 1.5% thanks to record production of its ammonia and urea ammonium nitrate (UAN) solution fertilizer products. Growth was also found toward the bottom of the income statement where CVR Partners reported earnings per share (EPS) of $9.64, representing a 9.8% increase over the $8.78 EPS that it reported during the same period in 2022.
The factor that likely motivated investors to pick up shares, though, was the company's distribution announcement. On May 22, CVR Partners will distribute $10.43 per common unit to unitholders. This payment follows a distribution of $10.50 per unit that CVR Partners provided in March.
Currently, shares of CVR Partners offer a forward yield of 33.4%.
Now what
Between its strong Q1 performance and its massive distribution later this month, it's unsurprising that investors are looking to plant this fertilizer stock in their portfolios. Chasing a high-yield distribution, however, is a risky strategy, and prospective investors would be well suited to dig in much deeper before clicking the buy button.
