Today's stock selection:
Nucor ( NUE
Insired by:
http://www.zacks.com/rank/zcommentary/?id=7897
Nucor ( NUE ) is a good growth and income play on the robust steel industry. The company recently issued an increased second-quarter earnings guidance, ranging between $1.75 to $1.80 per share, and analysts followed suit. Nucor’s ROE of 29% reflects solid growth, especially considering that the industry average is at 17%. The steel producer also sports healthy income. Its dividend yield of 1.7% is well above the industry average as the majority of the steel industry pays no dividends. NUE recently declared its 141st dividend in the amount of 52 cents per share, which is the sum of a regular quarterly dividend of 32 cents and a supplemental dividend of 20 cents.
141st Dividend
NUE recently declared its 141st dividend in the amount of 52 cents per share, which is the sum of a regular quarterly dividend of 32 cents and a supplemental dividend of 20 cents. The company noted that the dividend is payable on August 11, 2008 to stockholders of record on June 30, 2008.
Nucor said the supplemental dividend is based primarily on its continued strong results, adding that the payment of the supplemental dividend in any future period will depend upon many factors, including earnings, cash flows and financial position.
The company’s dividend yield of 1.7% is well above the industry average as the majority of the steel industry pays no dividends.
Strong Growth Compared to the Industry
Nucor’s return on equity (ROE) of 29% reflects solid growth, especially considering that the industry average is at 17%. Earnings per share are expected to grow by 10% over the next 3 – 5 years, versus the industry average of 9%.
Record Results
In mid-April, the company posted record first-quarter net earnings for the fifth consecutive year. Earnings per share of $1.41 improved on last year’s $1.26 and exceeded the consensus estimate by 8%. The company mentioned that the increase in earnings per share from the first quarter of 2007 is partially due to the reduced number of shares outstanding as a result of stock repurchases made in 2007.
Consolidated net sales jumped 32% to a record $4.97 billion from the year-ago level of $3.77 billion.
$76.29 (06/23/08)
