This Steelmaker Is Spending $2.5 Billion to Take on the Aluminum Industry
Steel Dynamics (NASDAQ: STLD) doesn't have the long history of a peer like United States Steel (NYSE: X), but that's actually been a huge benefit for the industrial (and industrious) up-and-comer. And now, it is eyeing an expansion into the aluminum industry, where it thinks it can capitalize on the same trends that helped it to succeed in the steel space.
Here's why the steel industry upstart is spending $2.5 billion to start making aluminum.
Steel Dynamics is one of the largest steelmakers in North America. Its industry is highly cyclical, with demand generally rising and falling along with economic activity. That makes sense given that steel is a key input into everything from highway construction to building skyscrapers to making washing machines. And yet, despite the inherent variability of the market in which it operates, the company has increased its dividend annually for 13 consecutive years. And over the past 10 years, the compound annual growth rate of its payout was a hefty 15%.
Source Fool.com
