Dividend.com: Cold Touch of Steel Dynamics

Steel Dynamics Slashes Dividend, Announces 27-Million Share Offering

Steel producer Steel Dynamics(STLD Quote) said Tuesday that it will cut its dividend by 25% and plans to offer 27 million shares of common stock and $150 million in senior convertible notes due 2014.

The Fort Wayne, Ind., company said it will pay a dividend of 7.5 cents per share for the second quarter down from a previous level of 10 cents per share. Steel Dynamics also announced a 27 million share offering, as well as $150 million of convertible senior notes due 2014. The company said it plans to use the funds generated from these sales to pay off debt.

Steel Dynamics shares fell $1.32 or 8.5% in Wednesday morning trading.

We had removed shares of Steel Dynamics from our "recommended" list back on July 18 when the stock was trading at $30.86. The company will now have a 1.92% dividend yield based on the lower dividend payout and last night's closing stock price of $15.59.

The stock has technical support in the $10 to $11 price area. If the shares can firm up, we see overhead resistance around the $16 to $19 price levels. We would remain on the sidelines for now. Steel Dynamics holds a Dividend.com DARS Rating of 2.8 out of 5 stars.

Aetna Shares Tumble After Cutting Full-Year Guidance

Healthcare benefits manager Aetna(AET Quote) cut its full-year profit forecast late Tuesday, sending its shares downward as the stock was also downgraded by Wachovia.

The Hartford, Conn., company reduced its fiscal 2009 operating income forecast to a range of $3.55 and $3.70 per share, down from a previous forecast for $3.85 to $3.95 per share. On average, Wall Street analysts expect a full-year profit of $3.80 per share. Aetna cited lower Medicare revenue and a recent trend where members are using more services or higher-value services, which affects the company's bottom line.