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Steel Dynamics (STLD) Increases Q1 Cash Dividend by 8%
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Steel Dynamics, Inc. (STLD - Free Report) has announced that its board of directors approved a first-quarter cash dividend of 46 cents per common share, representing an 8% increase over the company's 2023 quarterly rate. The dividend is payable to shareholders of record at the close of business as of Mar 31, 2024, on or around Apr 14, 2024.
The company has continuously increased its cash dividend in line with its structural growth strategies, resulting in a robust cash dividend growth profile. STLD believes that this decision shows the strength of its capital structure and liquidity profile, as well as sustained optimism and confidence in its prospects for strategic growth while remaining dedicated to maintaining an investment-grade credit rating.
Steel Dynamics concluded the fourth quarter with $1,400.9 million in cash and cash equivalents, a 14% decrease from the previous year. Long-term debt totaled $2,611 million, down 13.3%. In 2023, the company repurchased $1.5 billion of its common stock, which accounts for 8% of its total outstanding shares.
Shares of Steel Dynamics have gained 8.9% over the past year compared with a 13.8% rise of its industry.
Image Source: Zacks Investment Research
Steel Dynamics, on its fourth-quarter call, noted that it remains in a strong position. The company is ramping up operations at its new state-of-the-art electric arc furnace flat-rolled steel mill in Texas. It recently completed the construction of four additional value-added flat rolled steel coating lines, consisting of two paint lines and two galvanizing lines with Galvalume coating capability. These lines will enhance annual value-added flat rolled steel capacity by 1.1 million tons.
The company intends to commission these lines in the first quarter of 2024. Moreover, the current market dynamics support higher demand across its operating platforms in 2024, STLD noted.
Steel Dynamics currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include United States Steel Corporation (X - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) .
United States Steel carrying a Zacks Rank #1 (Strong Buy). X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 64.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 33.6% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 164% in a year.
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Steel Dynamics (STLD) Increases Q1 Cash Dividend by 8%
Steel Dynamics, Inc. (STLD - Free Report) has announced that its board of directors approved a first-quarter cash dividend of 46 cents per common share, representing an 8% increase over the company's 2023 quarterly rate. The dividend is payable to shareholders of record at the close of business as of Mar 31, 2024, on or around Apr 14, 2024.
The company has continuously increased its cash dividend in line with its structural growth strategies, resulting in a robust cash dividend growth profile. STLD believes that this decision shows the strength of its capital structure and liquidity profile, as well as sustained optimism and confidence in its prospects for strategic growth while remaining dedicated to maintaining an investment-grade credit rating.
Steel Dynamics concluded the fourth quarter with $1,400.9 million in cash and cash equivalents, a 14% decrease from the previous year. Long-term debt totaled $2,611 million, down 13.3%. In 2023, the company repurchased $1.5 billion of its common stock, which accounts for 8% of its total outstanding shares.
Shares of Steel Dynamics have gained 8.9% over the past year compared with a 13.8% rise of its industry.
Image Source: Zacks Investment Research
Steel Dynamics, on its fourth-quarter call, noted that it remains in a strong position. The company is ramping up operations at its new state-of-the-art electric arc furnace flat-rolled steel mill in Texas. It recently completed the construction of four additional value-added flat rolled steel coating lines, consisting of two paint lines and two galvanizing lines with Galvalume coating capability. These lines will enhance annual value-added flat rolled steel capacity by 1.1 million tons.
The company intends to commission these lines in the first quarter of 2024. Moreover, the current market dynamics support higher demand across its operating platforms in 2024, STLD noted.
Steel Dynamics, Inc. Price and Consensus
Steel Dynamics, Inc. price-consensus-chart | Steel Dynamics, Inc. Quote
Zacks Rank & Other Key Picks
Steel Dynamics currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include United States Steel Corporation (X - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) .
United States Steel carrying a Zacks Rank #1 (Strong Buy). X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 64.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 33.6% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 164% in a year.