Steel Dynamics Announces Dividend Hike and $1.5B Share Buyback Program

Core Viewpoint - Steel Dynamics, Inc. (STLD) is enhancing shareholder value through increased cash dividends and a significant share repurchase program, while maintaining strong financial performance and growth strategies. Group 1: Dividend and Share Repurchase - The board of directors announced a first-quarter cash dividend of 50 cents per common share, marking a 9% increase over the previous quarterly rate for 2024, payable on or around April 11, 2025 [1] - An additional $1.5 billion share repurchase program has been authorized, effective immediately, complementing a prior$1.5 billion program with $194 million still available for repurchase as of December 31, 2024 [2] Group 2: Financial Performance and Growth - Since 2017, STLD has repurchased$6.7 billion of its common stock, representing 41% of its outstanding shares, and paid cash dividends totaling $1.7 billion through December 31, 2024 [3] - The company has invested$7.1 billion in capital investments and acquisitions over the past five years, achieving a best-in-class after-tax return on invested capital of 24% [3] Group 3: Market Conditions and Demand - The company anticipates favorable market conditions to support rising demand across its operational platforms in 2025, with stabilized steel pricing and strong customer optimism [6] - The ongoing onshoring of manufacturing and expected public funding for infrastructure will enhance the competitiveness of the domestic steel industry [7] Group 4: Stock Performance - Shares of Steel Dynamics have gained 1.6% over the past year, contrasting with a 21.6% decline in its industry [5]