Last week, FMC Corporation (FMC) released its fourth-quarter earnings, after which the stock lost over a third of its market cap and fell to the lowest level since 2016. While FMC has since recovered slightly, it is deep in the red for the year and is the second worst-performing constituent of the S&P 500 Index ($SPX).
Meanwhile, after the crash, FMC’s dividend yield has risen to 6.6% which is over five times what an average S&P 500 Index constituent pays. On top of that, while several brokerages cut FMC’s target price following its Q4 earnings, the mean target price is still significantly above its current price. In this article, we’ll examine whether FMC stock is a buy for its healthy dividend yield.
