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. ...