Why Steel Dynamics (STLD) is Gaining Attention for Materials Dividends in 2025

Steel Dynamics, Inc. (NASDAQ:STLD) is included among the 13 Best Materials Dividend Stocks to Buy Right Now.

Steel Dynamics, Inc. (NASDAQ:STLD) ranks among the largest steel producers in North America. Its main operation centers around electric-arc furnace (EAF) steelmaking, which relies on recycled scrap metal as its primary input. This approach has a lower environmental footprint compared to traditional blast furnace methods and plays a key role in the company’s sustainability efforts.

Steel Dynamics, Inc. (NASDAQ:STLD) is now working to expand into recycled aluminum products, aiming to broaden its income sources and customer base. Vertical integration remains a priority, with many of its own facilities—such as fabrication shops— utilizing steel and materials produced internally. Initiatives like biocarbon use and circular manufacturing are also helping the company manage costs, stay compliant with regulations, and support growing customer demand for more sustainable supply chains.

Steel Dynamics, Inc. (NASDAQ:STLD) is a strong dividend payer with a robust cash position. In the most recent quarter, the company reported an operating cash flow of $302 million and paid $75 million in dividends. In addition, it has raised its payouts for 13 consecutive years, which makes it one of the best dividend stocks. The company pays a quarterly dividend of $0.50 per share and has a dividend yield of 1.57%, as of July 29.

While we acknowledge the potential of STLD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.