July 28, 2025 a 03:30 am
STLD: Dividend Analysis - Steel Dynamics, Inc.
Steel Dynamics, Inc. showcases a resilient dividend profile with a steady payout history spanning 22 years. The company's strategic management and solid financials, as evidenced by the favorable payout ratios and historical performance, make it an appealing choice for dividend investors. Anticipating continued growth, STLD maintains a strong position in the steel industry with a dividend yield of 1.50%.
Overview 📊
Steel Dynamics, Inc. caters to investors seeking consistent returns and growth potential. As a major player in the steel industry, its well-balanced approach to dividend distribution is noteworthy.
| Metric | Details |
|---|---|
| Sector | Steel |
| Dividend Yield | 1.50% |
| Current Dividend Per Share | $1.82 |
| Dividend History | 22 years |
| Last Cut or Suspension | None |
Dividend History 🗣️
The dividend history of Steel Dynamics, Inc. shows a reliable track record of payouts, critical for assessing the company's commitment to shareholders. Stability in this indicator tends to foster investor confidence.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.00 |
| 2024 | 1.84 |
| 2023 | 1.70 |
| 2022 | 1.36 |
| 2021 | 1.04 |
Dividend Growth 📈
The dividend growth metrics are crucial for understanding the trajectory of future payouts. Aim for sustained growth to evaluate long-term potential.
| Time | Growth |
|---|---|
| 3 years | 20.95% |
| 5 years | 13.90% |
The average dividend growth is 13.90% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio ⚠️
Payout ratios offer insight into a company's earnings allocation between dividends and reinvestment. Lower ratios often suggest sustainable dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 26.08% |
| Free cash flow-based | -251.28% |
Despite a reasonable EPS payout ratio of 26.08%, the negative FCF payout ratio indicates a potential red flag, suggesting cash flow management challenges.
Cashflow & Capital Efficiency 💰
Evaluating cash flow and capital efficiency highlights financial health. Indicators like free cash flow yield and operational efficiencies guide investment analysis.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | -0.13% | 9.47% | 19.82% |
| Earnings Yield | 8.67% | 12.46% | 21.56% |
| CAPEX to Operating Cash Flow | 101.27% | 47.10% | 20.38% |
| Stock-based Compensation to Revenue | 0.38% | 0.33% | 0.27% |
| Free Cash Flow/Operating Cash Flow Ratio | -1.27% | 52.90% | 79.62% |
The consistency in earnings yield underscores STLD's robust profitability despite slight fluctuations in capital efficiency metrics.
Balance Sheet & Leverage Analysis 📉
Balance sheet strength and leverage ratios are pivotal for assessing long-term viability and risk exposure.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 36.16% | 36.08% | 37.77% |
| Debt-to-Assets | 21.63% | 21.46% | 21.68% |
| Debt-to-Capital | 26.56% | 26.51% | 27.41% |
| Net Debt to EBITDA | 1.05 | 0.48 | 0.26 |
| Current Ratio | 0 | 0 | 3.76 |
| Quick Ratio | 1.08 | 1.67 | 2.22 |
| Financial Leverage | 1.67 | 1.68 | 1.74 |
Solid ratios indicate manageable debt levels, with the quick and current ratios depicting a positive liquidity picture.
Fundamental Strength & Profitability ✅
Strong fundamentals typically predict a company's sustainable competitive edge and capacity for profitability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 17.20% | 27.64% | 47.51% |
| Return on Assets | 10.29% | 16.44% | 27.28% |
| Margins: Net | 8.76% | 13.04% | 17.35% |
| EBIT | 11.63% | 17.53% | 22.97% |
| EBITDA | 14.36% | 19.86% | 24.69% |
| Gross | 15.98% | 21.53% | 27.48% |
| Research & Development to Revenue | 0.00% | 0.00% | 0.00% |
High return on equity and robust margins highlight Steel Dynamics' ability to generate profitable growth.
Price Development 📉
Dividend Scoring System ⚖️
| Category | Score | Visualization |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 2 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 30/40
Rating ⭐
Steel Dynamics, Inc. receives a strong rating for dividend reliability and growth potential. Despite some cash flow challenges, the company shows a firm commitment to consistent dividends, making it a favorable choice for investors seeking long-term income with growth potential.