Steel Dynamics

Steel Dynamics is one of the largest and most efficient steel producers in the United States, using electric arc furnaces and recycled scrap to make flat-rolled and structural steel. Its low-cost model, growing fabrication and aluminum operations, and disciplined management have made it a standout in a notoriously cyclical industry. Steel Dynamics has raised its dividend for more than a decade and complements it with sizable share buybacks, funded by strong through-cycle cash generation. The yield is low, in part because earnings and payouts are held against a volatile steel price backdrop. It suits investors seeking a growing dividend from a best-in-class but inherently cyclical producer.