Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nitrogen products producer Terra Nitrogen (NYSE: TNH), which is 75%-owned by CF Industries (NYSE: CF), has earned a respected four-star ranking.

With that in mind, let's take a closer look at Terra's business and see what CAPS investors are saying about the stock right now.

Terra facts

Headquarters (Founded)

Sioux City, Iowa (1991)

Market Cap

$1.7 billion


Agricultural chemicals

Trailing-12-Month Revenue

$485.3 million


CEO Michael Bennett (since 1998)
CFO Daniel Greenwell (since 2008)

Return on Capital (Average, Past 3 Years)



$94.6 million / $0

Dividend Yield



Agrium (NYSE: AGU)
Mosaic (NYSE: MOS)
PotashCorp (NYSE: POT)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 1,182 members who have rated Terra believe the stock will outperform the S&P 500 going forward. These bulls include Monroe7 and KnockoutMouse.

A few months ago, Monroe7 tapped Terra as a rather bountiful opportunity: "Fertilizer companies should do well as agricultural production picks up and a high dividend is a great advantage even if the stock doesn't move much in price over the short term."

While a 10%-plus dividend yield might sound too good to be true, Terra's master limited partnership status requires it to pay the majority of its income to unitholders in lieu of taxes. In fact, over the past five years, on a total return basis, Terra has outperformed rivals Agrium, Mosaic, and, even with its buyout-induced spike, PotashCorp. Of course, with as many industry-topping qualities as Terra sports, CAPS member KnockoutMouse thinks the shares still have plenty of room to outperform:

1. A clear leader in an industry with high barriers to competition.
2. Well managed and efficient: with a high ROIC and profit margin.
3. Strong balance sheet, free cash flow adequate to fund its dividend, and well managed debt.
4. A history of substantial dividends and dividend growth. ...

[Terra] is one of the largest suppliers of liquid nitrogen fertilizer to the North American crop belt. This is a late call on my part, I should have picked it a lot lower, but it still has room to run long term.

What do you think about Terra Nitrogen, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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