Daily Stock Pick: Steel Dynamics (STLD)
A new portfolio of stocks I started building Tuesday, named Vista, will select its first stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!
Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)
Today we'll review the third of four Basic Materials stock candidates for the very first selection in the Vista portfolio
My subject today is a steel company named, Steel Dynamics Inc Its trading ticker symbol is STLD. This is my first ever report on Steel Dynamics Inc for my new Vista portfolio.
Steel Dynamics operates scrap-based steel minimills with roughly 13 million tons of annual steel production capacity.
The company manufactures steel products that primarily serve the construction, automotive, and machinery end markets. It also processes and sells recycled ferrous and nonferrous metals and operates a steel fabrication business that manufactures products for the nonresidential construction industry.
The company also exports its products.
Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana.
I use three key data points to gauge dividend equities or funds like Steel Dynamics Inc:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
STLD Price
Steel Dynamics's price per share closed at $29.34 yesterday. A year ago its price was $28.97. Price rose $0.37 or just about 1.3% last year.
Assuming Steel Dynamics's stock trades in the range of $15 to $35 this next year, its recent $29.34 price might rise by $2.66 to reach $32.00 by September 10, 2021.
STLD Dividends
Steel Dynamics's most recently declared quarterly dividend was $0.25 payable October 16th and will total $1.00 annually and yield 3.41% at yesterday's $29.34 price.
STLD Gains?
Adding the $1.00 annual anticipated dividend to my $2.66 optimistic estimate of Steel Dynamics's price upside shows a $3.66 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little under $1,000.00 today in Steel Dynamics Inc at $29.34, we would buy 34 shares of STLD stock.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.29 per share.
Subtract that $0.29 brokerage cost from my estimated $3.66 gross gain per share results in a net gain of $3.37 X 34 shares = $114.58 for an 11.5% net gain on a $997.56 investment.
Thus, Steel Dynamics Inc shows a possible 11.5% net gain including a 3.41% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of Steel Dynamics Inc. Only time and money invested in this stock will determine its worth.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...
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