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Nucor (NUE) Boosts Shareholder Returns, Raises Dividend

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Nucor Corporation (NUE - Free Report) recently announced that its board declared a quarterly cash dividend on its common stock of 40.5 cents per share. This marks the company’s 191st consecutive quarterly cash dividend. The dividend is up from the prior payout of 40.25 cents.

Notably, the company hiked its dividend for the 48th consecutive year. This is consistent with its focus on disciplined and balanced capital allocation as well as shareholders’ returns. In the past ten years, it has returned roughly $6 billion in capital to its shareholders in the form of base dividends and share repurchases.

The revised dividend will be payable on Feb 11, 2021, to shareholders of record as of Dec 31, 2020.

Shares of Nucor have dropped by 2.3% in the past year compared with 16.7% rise of the industry.

At the end of the third quarter, the company’s cash and cash equivalents surged nearly 70% year over year to $2,866.6 million. For the first nine months, net cash generated from operating activities rose 4% year over year to around $2.2 billion.

Nucor expects higher earnings in the last quarter of 2020 compared with prior-quarter levels, mainly due to improved pricing at its sheet and plate mills. The company also expects raw materials unit’s earnings to increase sequentially in the fourth quarter owing to improved margins at its direct reduced iron facilities.

The company is benefitting from continued strength in non-residential construction markets and recovery in the automotive market. It is seeing a rebound in the automotive market on the back of customer demand.

Nucor Corporation Price and Consensus

 

Nucor Corporation Price and Consensus

Nucor Corporation price-consensus-chart | Nucor Corporation Quote

 

Zacks Rank & Stocks to Consider

Nucor currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the basic materials space are Bunge Limited (BG - Free Report) , Silvercorp Metals Inc. (SVM - Free Report) , and First Majestic Silver Corp. (AG - Free Report) .

Bunge has a projected earnings growth rate of 43% for the current year. The company’s shares have gained around 15% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Silvercorp has an expected earnings growth rate of 40% for the current year. The company’s shares are up around 13.6% in the past year. It currently carries a Zacks Rank #2 (Buy).

First Majestic has an expected earnings growth rate of 75% for the current year. The company’s shares have gained around 5.7% in the past year. It currently carries a Zacks Rank #2.

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