July 04, 2026 a 11:31 am
NUE: Dividend Analysis - Nucor Corporation
Nucor Corporation, known for its robust position in the steel industry, presents an attractive dividend profile. With a consistent history of dividend payments spanning 44 years, this company showcases resilience and commitment to shareholders. Despite a relatively low current dividend yield at 1%, the firm's payout ratios and financial health indicators suggest a sustainable dividend policy moving forward.
Overview
Analyzing Nucor Corporation's dividend profile provides insight into its potential as a long-term investment. It operates within the industrial metals industry and offers a dividend yield of 1%. The firm's current dividend per share is $2.22, reinforcing its status as a steady income provider with 44 uninterrupted years of dividend history.
| Key Metrics | Details |
|---|---|
| Sector | Industrial Metals |
| Dividend Yield | 1.00% |
| Current Dividend per Share | $2.22 USD |
| Dividend History | 44 years |
| Last Cut or Suspension | None |
Dividend History
Nucor has maintained a steady growth in dividends, which is pivotal in assessing the reliability of returns for dividend investors. Consistency in dividend payments highlights a company’s stability and long-term profitability. Below is a summary of the past five years of dividend payments:
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | $1.12 |
| 2025 | $2.21 |
| 2024 | $2.17 |
| 2023 | $2.07 |
| 2022 | $2.01 |
Dividend Growth
The dividend growth rate is a critical measure to understand how a company's dividend payments have increased over time, reflecting its profitability and efficiency in earnings distribution. The following table represents the dividend growth over the last 3 and 5 years:
| Time Period | Growth |
|---|---|
| 3 years | 3.21% |
| 5 years | 6.51% |
The average dividend growth is 6.51% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
Payout ratios enable investors to assess whether the dividends are sustainable in relation to the company's earnings and cash flows. High payout ratios might suggest limited reinvestment capabilities:
| Key Figure | Ratio |
|---|---|
| EPS-based | 21.79% |
| Free Cash Flow-based | 95.01% |
The EPS-based payout ratio of 21.79% is indicative of a lower risk profile. However, the free cash flow payout ratio at 95.01% warrants caution as it could restrict reinvestment potential.
Cashflow & Capital Efficiency
Cashflow metrics provide insight into how efficiently a company converts sales into cash and manages its capital expenditures, crucial for sustaining dividend payments:
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | -0.50% | 2.90% | 11.27% |
| Earnings Yield | 4.63% | 7.29% | 10.41% |
| CAPEX to Operating Cash Flow | 105.81% | 79.74% | 31.13% |
| Stock-based Compensation to Revenue | 0.41% | 0.43% | 0.37% |
| Free Cash Flow / Operating Cash Flow Ratio | -5.81% | 20.25% | 68.87% |
Over the recent years, free cash flow margins indicate volatility, stressing the need for careful cash management to maintain dividends.
Balance Sheet & Leverage Analysis
Analyzing leverage ratios helps understand financial risk and the company's ability to pay off its debt obligations. Here’s a look at Nucor’s ratios over recent years:
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 34.01% | 34.25% | 32.67% |
| Debt-to-Assets | 20.29% | 20.48% | 19.36% |
| Debt-to-Capital | 25.38% | 25.51% | 24.63% |
| Net Debt to EBITDA | 1.18 | 0.76 | 0.06 |
| Current Ratio | 2.90 | 2.51 | 3.57 |
| Quick Ratio | 1.57 | 1.48 | 2.35 |
| Financial Leverage | 1.68 | 1.67 | 1.69 |
Nucor’s leverage ratios indicate modest levels of debt compared to equity, reflecting strong financial stability and effective use of leverage.
Fundamental Strength & Profitability
Key profitability metrics shed light on Nucor’s operational efficiency and its ability to generate profits. Here’s how it performs over recent years:
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 8.33% | 9.99% | 21.61% |
| Return on Assets | 4.97% | 5.97% | 12.80% |
| Margins: Net | 5.37% | 6.60% | 13.03% |
| Margins: EBIT | 8.08% | 10.18% | 18.78% |
| Margins: EBITDA | 12.63% | 14.60% | 22.15% |
| Margins: Gross | 11.93% | 13.35% | 22.51% |
| Research & Development to Revenue | 0.00% | 0.00% | 0.00% |
The company’s robust profitability ratios, led by a healthy ROE and margin expansion, reveal strong operational efficiency.
Price Development
Dividend Scoring System
The dividend scoring system evaluates Nucor’s dividend reliability based on multiple aspects to help investors decide on its suitability for their portfolio:
| Criteria | Score | Visual Indicator |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 3 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 31 out of 40
Rating
In conclusion, Nucor Corporation exhibits a strong and resilient dividend history, complemented by firm financial stability. Despite a modest yield, the company’s consistency in dividend payments and solid financial health merit a favorable consideration for dividend-focused portfolios.
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