Nucor Keeps Putting Its Windfall Profits to Good Use

Despite a 30%-plus price decline, Nucor (NYSE: NUE) stock is still kind of expensive, with a historically low dividend yield of 1.7% or so. Eventually that'll change, given the highly cyclical nature of the steel industry. But in the meantime, investors should take note that Nucor is making some significant investments -- and that's very good news.

Anyone who has a leaning toward value investing will understand that it isn't just important to buy good companies; you also need to buy them when they are relatively cheap. Otherwise, you risk overpaying. Businesses tend to move forward along a sine curve, so this makes complete sense. For U.S. steel giant Nucor, however, the industry in which it operates is highly cyclical, so the ups and downs tend to be even more extreme, and -- to some extent -- predictable.