Monday, March 14, 2011

Steel Dynamics (STLD) Boosts Dividend on Strong Demand

Steel Dynamics (NASDAQ:STLD) jumped 4 percent on Friday after the company issued earnings guidance for the first quarter of 37 to 42 cents, at the high end of consensus estimates for 38 cents and far above last year’s 29-cent EPS. Steel Dynamics also increased its quarterly dividend to 10 cents a share from 8 cents. The dividend now yields 2.1 percent.

Chairman and CEO Keith E. Busse said in a statement, “We are encouraged by the current levels of general demand we are seeing, including some moderate increases in activity at our Structural and Rail Division as rail continues to be an area of focus, and we remain optimistic concerning the nation’s economic improvement.”

Standard & Poor’s equity analyst Leo Larkin agreed, saying, “STLD is experiencing better volume and margins overall." He upgraded the stock from "Hold" to "Buy."

Steel Dynamics closed Friday at $18.55, gaining $0.70, or 3.92 percent.

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