Steel Dynamics Increases Dividend by 6% Due to Robust Cash Flow

Steel Dynamics Announces Dividend Increase for 2026

Steel Dynamics, Inc. (STLD) has revealed that its board has authorized a 6% boost to the company’s cash dividend for the first quarter of 2026. The new dividend will be 53 cents per share, up from the previous year’s quarterly payout.

Shareholders who are on record as of March 31, 2026, will receive this dividend around April 10, 2026. This move underscores Steel Dynamics’ ongoing strategy to reward investors, combining both dividend payments and share repurchases as part of its capital return plan.

At the close of the fourth quarter, Steel Dynamics reported cash and cash equivalents totaling $769.9 million, marking a 31% increase compared to the prior year. The company generated $272.7 million in operating cash flow during the quarter. In 2025, STLD returned $291 million to shareholders through dividends and repurchased $901 million worth of its own shares.

This annual dividend increase highlights the company’s confidence in its financial position, robust cash generation, and long-term growth outlook for its core steelmaking business. Over the past five years, Steel Dynamics has raised its dividend six times, demonstrating a disciplined approach to capital allocation while continuing to invest in expanding capacity and improving operations.

Over the last year, STLD shares have climbed 42.5%, while the broader steel producers industry saw a 56.2% gain.

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STLD’s Current Zacks Rank and Noteworthy Alternatives

STLD holds a Zacks Rank #3 (Hold) at present.

Investors seeking higher-ranked options in the Basic Materials sector may consider Albemarle Corporation (ALB), DuPont de Nemours, Inc. (DD), and Centerra Gold, Inc. (CGAU). Each of these stocks currently carries a Zacks Rank #1 (Strong Buy).

• For ALB, the Zacks Consensus Estimate for 2026 earnings stands at $6.99 per share, projecting a 985% increase year over year. The company has exceeded earnings expectations in three of the last four quarters, with an average surprise of 58%.
• DD’s 2026 earnings are estimated at $2.28 per share, a 36% rise from the previous year. The company has surpassed consensus estimates in all four of the last quarters, averaging a 6.5% surprise.
• CGAU’s 2026 earnings are forecasted at $1.68 per share, reflecting a 51.4% decrease year over year. Despite this, CGAU has beaten earnings estimates in each of the past four quarters, with an average surprise of 29.4%.

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