September 14, 2025 a 12:47 pm
STLD: Dividend Analysis - Steel Dynamics, Inc.
Steel Dynamics, Inc. demonstrates a strong commitment to providing consistent dividends with a notable yield backed by a stable payout strategy. The company's ability to sustain and grow its dividends over the past decades indicates robust financial health and a solid foundation for future growth.
📊 Overview
The following table provides an overview of key dividend metrics for Steel Dynamics, Inc.
| Metric | Value |
|---|---|
| Sector | Materials |
| Dividend yield | 1.50 % |
| Current dividend per share | 1.82 USD |
| Dividend history | 22 years |
| Last cut or suspension | None |
📈 Dividend History
Steel Dynamics has showcased a stable and growing dividend history, emphasizing its resilience and reliability in returning value to shareholders throughout economic cycles. Consistent growth over 22 years highlights the company's long-term financial strategy.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.50 |
| 2024 | 1.84 |
| 2023 | 1.70 |
| 2022 | 1.36 |
| 2021 | 1.04 |
🗣️ Dividend Growth
The growth of dividends over the last several years indicates the company's commitment to enhancing shareholder value. It is essential for assessing the potential capital appreciation associated with a company's shares.
| 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
The payout ratio provides insight into how much of the company's earnings are being returned to shareholders as dividends. A balanced ratio indicates a sustainable dividend strategy.
| Key figure | Ratio |
|---|---|
| EPS-based | 26.08 % |
| Free cash flow-based | -249.17 % |
With an EPS-based payout ratio of 26.08 %, Steel Dynamics maintains a conservative and sustainable dividend policy. However, the negative free cash flow-based ratio suggests some operational cash flow challenges.
✅ Cashflow & Capital Efficiency
These metrics help evaluate Steel Dynamics's cash flow stability and capital efficiency, indicating operational health and potential for sustainable growth.
| Metric | 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 | 10.12 % | 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 % |
While the recent dip in FCF yield poses some concerns, consistent positive earnings yield markedly enhances investor confidence in capital efficiency.
⚠️ Balance Sheet & Leverage Analysis
Analyzing the balance sheet provides insight into Steel Dynamics's financial stability, reflecting its capacity to meet financial obligations and manage debt levels wisely.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 36.16 % | 34.64 % | 37.77 % |
| Debt-to-Assets | 21.63 % | 20.60 % | 21.68 % |
| Debt-to-Capital | 26.56 % | 25.73 % | 27.41 % |
| Net Debt to EBITDA | 1.05 | 0.45 | 0.26 |
| Current Ratio | 3.13 | 2.91 | 3.76 |
| Quick Ratio | 1.08 | 1.67 | 2.22 |
| Financial Leverage | 1.67 | 1.68 | 1.74 |
The solid balance sheet reflected by low leverage ratios signifies a prudent capital structure with manageable debt levels and ample liquidity.
🗣️ Fundamental Strength & Profitability
Strengthening fundamentals indicate excellent profitability potential, driving long-term shareholder value.
| Metric | 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 Margin | 11.63 % | 17.53 % | 22.37 % |
| EBITDA Margin | 14.36 % | 19.86 % | 24.69 % |
| Gross Margin | 15.98 % | 21.53 % | 27.48 % |
| Research & Development to Revenue | 0.00 % | 0.00 % | 0.00 % |
Impressive profitability margins, paired with strong returns on equity and assets, confirm a well-managed enterprise poised for sustained growth.
📈 Price Development
✅ Dividend Scoring System
Evaluating Steel Dynamics, Inc. through our comprehensive Dividend Scoring System:
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
🗣️ Rating
Steel Dynamics, Inc. is highly recommended for income-focused investors, demonstrating a high level of dividend reliability and offering decent growth potential. Its financial stability, evidenced by its solid balance sheet and sound cash flow metrics, positions the company as a strong player in the sector.