July 12, 2025 a 07:47 am
NUE: Dividend Analysis - Nucor Corporation
The dividend analysis of Nucor Corporation highlights its resilient and promising dividend profile. With a long-standing history of uninterrupted dividend payments and subtle increases over the years, it positions itself as a stable choice for income-focused investors. The consistent performance in dividends alongside a modest yield offers a balanced investment potential for those looking at sustainable income streams. The financial metrics further strengthen the viability of continued dividends.
Overview 📊
Nucor Corporation, a key player in the steel sector, maintains a competitive dividend yield juxtaposed with strong corporate financials. The company's ability to deliver dividends consistently over 43 years indicates a robust balance between growth and income, ensuring investor confidence.
| Metric | Details |
|---|---|
| Sector | Steel |
| Dividend Yield | 1.69 % |
| Current Dividend per Share | 2.19 USD |
| Dividend History | 43 years |
| Last Cut or Suspension | None |
Dividend History 🗣️
With an illustrious history marked by uninterrupted dividend payments for over four decades, Nucor's ability to maintain and enhance shareholder value is evident. Such performance offers assurance against market volatility and aligns with long-term wealth accumulation goals.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.10 |
| 2024 | 2.17 |
| 2023 | 2.07 |
| 2022 | 2.01 |
| 2021 | 1.715 |
Dividend Growth 📈
The growth dynamics of Nucor's dividends over a three-year horizon reveal an increase of 8.16%, while the five-year perspective shows 6.25%. These metrics signal a promising, growing appeal for investors prioritizing income enhancement in their portfolios.
| Time | Growth |
|---|---|
| 3 years | 8.16 % |
| 5 years | 6.25 % |
The average dividend growth is 6.25% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio ⚠️
A balanced payout policy is critical for the sustainability of dividends. With a payout ratio of 38.09% based on EPS and 96.89% against free cash flow, Nucor demonstrates a prudent approach, aligning payout to growth initiatives while ensuring shareholder rewards.
| Key figure ratio | Percentage |
|---|---|
| EPS-based | 38.09 % |
| Free cash flow-based | 96.89 % |
The current ratio indicates efficient management amid growth efforts, though a high FCF payout suggests close monitoring for liquidity conservation.
Cashflow & Capital Efficiency 💼
The financial health assessment underscores Nucor's adept capital utilization. Efficient allocation evidenced by a Free Cash Flow Yield of 0.0157 showcases disciplined expenditure management.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.90 % | 11.27 % | 23.49 % |
| Earnings Yield | 7.29 % | 10.41 % | 21.99 % |
| CAPEX to Operating Cash Flow | 86.57 % | 31.13 % | 19.34 % |
| Stock-based Compensation to Revenue | 0.43 % | 0.37 % | 0.33 % |
| Free Cash Flow / Operating Cash Flow Ratio | 20.26 % | 68.87 % | 80.66 % |
Nucor's strategic investment in CAPEX provides agility for future growth. However, maintaining higher FCF ratios will be essential to support expansions effectively.
Balance Sheet & Leverage Analysis 🔍
Nucor's disciplined financial framework reflects prudent leverage application and robust liquidity, ensuring resilience against market shifts.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 34.25 % | 33.19 % | 36.34 % |
| Debt-to-Assets | 20.48 % | 19.66 % | 20.60 % |
| Debt-to-Capital | 25.51 % | 24.92 % | 26.65 % |
| Net Debt to EBITDA | 75.61 % | 7.36 % | 20.83 % |
| Current Ratio | 2.52 | -- | -- |
| Quick Ratio | 1.48 | 2.35 | 2.13 |
| Financial Leverage | 1.67 | 1.68 | 1.76 |
The low leverage ratios emphasize financial flexibility, providing opportunities to capitalize on emerging prospects without compromising liquidity.
Fundamental Strength & Profitability 💪
Assessing Nucor's profitability, lucrative returns on equity and assets across the years highlight operational efficiency and shareholder value enhancement.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 9.99 % | 21.61 % | 41.31 % |
| Return on Assets | 5.97 % | 12.80 % | 23.42 % |
| Margins: Net | 6.60 % | 13.03 % | 18.33 % |
| Margins: EBIT | 10.18 % | 18.78 % | 25.21 % |
| Margins: EBITDA | 14.60 % | 22.14 % | 27.87 % |
| Margins: Gross | 13.35 % | 22.54 % | 30.12 % |
| Research & Development to Revenue | 0.00 % | 0.00 % | 0.00 % |
Nucor's robust returns on invested capital impart confidence in its financial stewardship, balanced effectively with revenue generation capabilities.
Price Development 📉
Dividend Scoring System ✅
| Category | Score (out of 5) | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 3 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 31/40
Rating 🌟
Concluding with a commendable dividend profile, Nucor Corporation stands out for its reliability and resilience. The company's strategic balance between growth investments and consistent dividends enhances its attractiveness for income-oriented and value investors alike.