Steel Dynamics, Inc. (NASDAQ:STLD) Stock to Pay Quarterly Dividend of $0.53

Key Points

• Steel Dynamics declared a quarterly dividend of $0.53 per share, payable January 8 to shareholders of record December 31. That equals $2.12 annually and a 0.9% yield.
• The company has raised its dividend for 13 consecutive years. Its 17.2% payout ratio indicates the current dividend is well covered by earnings.
• In its latest quarter, Steel Dynamics earned $5.26 per share, below analysts’ $5.48 estimate, while revenue rose 34.8% year over year to $6.51 billion. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $275.17.

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) announced a quarterly dividend on Monday, November 9th. Shareholders of record on Thursday, December 31st will be paid a dividend of $0.53 per share by the basic materials company on Friday, January 8th. This represents a $2.12 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, December 31st.

Steel Dynamics has increased its dividend by an average of 0.1% per year over the last three years and has increased its dividend every year for the last 13 years. Steel Dynamics has a dividend payout ratio of 17.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Steel Dynamics to earn $23.49 per share next year, which means the company should continue to be able to cover its $2.12 annual dividend with an expected future payout ratio of 9.0%.

Steel Dynamics Stock Up 2.1%

Shares of Steel Dynamics stock opened at $227.56 on Tuesday. The company has a debt-to-equity ratio of 0.43, a current ratio of 3.14 and a quick ratio of 1.48. Steel Dynamics has a 1-year low of $150.22 and a 1-year high of $288.74. The business's fifty day moving average price is $238.23 and its two-hundred day moving average price is $225.13. The company has a market capitalization of $32.36 billion, a P/E ratio of 16.79, a PEG ratio of 0.34 and a beta of 1.45.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its quarterly earnings results on Monday, October 19th. The basic materials company reported $5.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.48 by ($0.22). The business had revenue of $6.51 billion during the quarter, compared to the consensus estimate of $6.43 billion. Steel Dynamics had a return on equity of 21.57% and a net margin of 8.82%. The company's revenue for the quarter was up 34.8% compared to the same quarter last year. During the same period in the previous year, the company posted $2.74 EPS. As a group, research analysts forecast that Steel Dynamics will post 18.12 EPS for the current year.

Analysts Set New Price Targets

Several research firms have commented on STLD. Barclays set a $280.00 target price on shares of Steel Dynamics in a research note on Friday, October 23rd. Wall Street Zen lowered shares of Steel Dynamics from a "strong-buy" rating to a "buy" rating in a research note on Sunday, September 20th. UBS Group increased their price objective on shares of Steel Dynamics from $165.00 to $276.00 and gave the company a "neutral" rating in a report on Monday, August 10th. JPMorgan Chase & Co. lowered their price objective on shares of Steel Dynamics from $272.00 to $260.00 and set a "neutral" rating on the stock in a research note on Friday, October 9th. Finally, The Goldman Sachs Group reissued a "buy" rating and set a $299.00 target price (down from $301.00) on shares of Steel Dynamics in a report on Tuesday, October 20th. Nine analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $275.17.

About Steel Dynamics

Steel Dynamics, Inc is a U.S.-based steel producer and metals recycler founded in 1993. The company operates electric-arc-furnace steel mills and produces flat-rolled, structural, engineered bar, merchant bar and rail products for customers across a range of industries.

Its businesses also include metals recycling, steel fabrication and aluminum operations. Through these activities, Steel Dynamics collects and processes scrap metal, manufactures steel components and supplies products used in construction, automotive manufacturing, energy and other markets.

Headquartered in Fort Wayne, Indiana, the company serves customers primarily in the United States and Mexico.

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