5 Dividend Stocks That Are Strong As Steel

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Includes: CMC, FRD, GNI, HSC, NUE
by: Dividend Dog

Income investors searching for steady dividends could benefit by adding steel companies to their portfolios. The following five steel stocks pay attractive dividends and have earned positive returns on equity over the past 10 fiscal years:

Great Northern Iron Ore Properties (NYSE:GNI) recently traded at $109.99 per share. At this price level, the stock has a 11.8% dividend yield. For 10 out of the past 10 fiscal years, a share of GNI paid a total of $88.75 in dividends. Of these dividend payments, a total of $52.25 were paid in the last five years.

GNI shareholders have suffered a -16.6% drop in share price over the past year. At present, shares of this microcap stock trade at a price-to-book ratio of 13.4, a price-to-earnings multiple of 7.8, and a price-to-sales multiple of 6.6 (trailing twelve months). Over the past decade shareholders savored a 98.6% average annual return on equity.

Friedman Industries Inc. (NYSEMKT:FRD) recently traded at $10.81 per share. At this price level, the stock has a 4.8% dividend yield. For 10 out of the past 10 fiscal years, a share of FRD paid a total of $2.22 in dividends. Of these dividend payments, a total of $1.35 were paid in the last five years.

FRD shareholders have savored a 29.5% growth in share price over the past year. At present, shares of this microcap stock trade at a price-to-book ratio of 1.2, a price-to-earnings multiple of 8.1, and a price-to-sales multiple of 0.5 (trailing twelve months). Over the past decade shareholders savored a 11.9% average annual return on equity.

Harsco Corporation (NYSE:HSC) recently traded at $20.66 per share. At this price level, the stock has a 4.0% dividend yield. For 10 out of the past 10 fiscal years, a share of HSC paid a total of $6.42 in dividends. Of these dividend payments, a total of $3.76 were paid in the last five years.

HSC shareholders have suffered a -25.0% decline in share price over the past year. At present, shares of this smallcap stock trade at a price-to-book ratio of 1.2, a price-to-earnings multiple of 53.0, and a price-to-sales multiple of 0.5 (trailing twelve months). Over the past decade shareholders savored a 13.2% average annual return on equity. (This long ROE track-record overshadows a yearly P/E ratio.)

Nucor Corporation (NYSE:NUE) recently traded at $40.61 per share. At this price level, the stock has a 3.6% dividend yield. For 10 out of the past 10 fiscal years, a share of NUE paid a total of $7.12 in dividends. Of these dividend payments, a total of $5.89 were paid in the last five years.

NUE shareholders have endured a -4.7% decline in share price over the past year. At present, shares of this largecap stock trade at a price-to-book ratio of 1.7, a price-to-earnings multiple of 20.5, and a price-to-sales multiple of 0.7 (trailing twelve months). Over the past decade shareholders savored a 17.1% average annual return on equity.

Commercial Metals Company (NYSE:CMC) recently traded at $14.33 per share. At this price level, the stock has a 3.4% dividend yield. For 10 out of the past 10 fiscal years, a share of CMC paid a total of $2.75 in dividends. Of these dividend payments, a total of $2.22 were paid in the last five years.

CMC shareholders have endured a -11.3% drop in share price over the past year. At present, shares of this smallcap stock trade at a price-to-book ratio of 1.4, and a price-to-sales multiple of 0.2 (trailing twelve months). Over the past decade shareholders savored a 10.8% average annual return on equity.

Since each of these stocks has a long term history of growing dividends and earning a return to equity, long term investors should consider them.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. This article was written to provide investor information and education, and should not be construed as a guarantee or investment advice. I have no idea what your individual risk, time-horizon, and tax circumstances are: please seek the personal advice of a financial planner. This article uses third-party data and may contain approximations and errors. Please check estimates and data for yourself before investing.