Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, steel giant Nucor (NYSE: NUE ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Nucor's business and see what CAPS investors are saying about the stock right now.
Nucor facts
| Headquarters (Founded) |
Charlotte, N.C. (1940) |
| Market Cap |
$13 billion |
| Industry |
Steel |
| Trailing-12-Month Revenue |
$19 billion |
| Management |
CEO Daniel DiMicco (since 2000)
CFO James Frias (since 2010) |
| Return on Equity (Average, Past 3 Years) |
3.7% |
| Cash/Debt |
$2.41 billion / $4.29 billion |
| Dividend Yield |
3.5% |
| Competitors |
ArcelorMittal (NYSE: MT )
POSCO (NYSE: PKX )
U.S. Steel (NYSE: X ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 2,228 CAPS members who have rated Nucor believe the stock will outperform the S&P 500 going forward. These bulls include Vermilian and All-Star Nolte808, who is ranked in the top 5% of our community.
Earlier this year, Vermilian tapped Nucor as a solid income opportunity: "A bet on economic recovery. This is a good dividend stock for a long term investment with a great history of increased dividends."
Over the past five years, in fact, Nucor has grown its dividend at an impressive rate of 31% annually. That's faster than that of competitors ArcelorMittal (10%) and POSCO (9%), let alone U.S. Steel's average dividend decline of 17%.
CAPS All-Star Nolte808 elaborates on the Nucor bull case:
These guys take "adapt or die" to a new level. For producing a commodity, they consistently innovate (without a formal R&D dept, it is done in operations), find ways of reducing cost inputs with a long term vision (build out of their plant in Louisiana in height of recession which will have lower energy costs as it will use long term natural gas contracts), and employees have skin in the game via output quality bonuses rather than pensions. ... [A] great company to buy now if you are a long term investor -- waiting until the cycle has obviously turned will be an easier but less profitable time to buy.
What do you think about Nucor, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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