Everybody that's been following the market knows that steel stocks are en fuego. As is the economy of Brazil, and more broadly, Latin America. And, as I've mentioned before, I'm a sucker for dividend stocks.
With all that in mind, I present to you Companhia Siderurgica Nacional (SID). Of all the steel stocks I've researched, SID had the best combination of high margins; high returns on assets and equity; positive cash flows; and high dividend yield. Yet somehow, it has largely not participated in the recent steel-stock bull run. I believe that it will gain the recognition it deserves soon - and if not, it is a prime takeover candidate in an industry ripe for consolidation.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Southern Copper (PCU) 12.80%
Dominion Resources Black Warrior Trust (DOM) 12.56%
Fording Canadian Coal (FDG) 10.63%
Goldman Sachs (GS) 7.33%
Google (GOOG) 6.02%
Apple (AAPL) 5.41%
Tidewater (TDW) 5.11%
Apache (APA) 4.87%
American Capital Strategies (ACAS) 4.79%
Terra Nitrogen (TNH) 4.69%
Foster Wheeler (FWLT) 4.32%
MEMC Electronic Materials (WFR) 3.70%
Frontline (FRO) 3.70%
Companhia Siderurgica Nacional (SID) 3.49%
NVIDIA (NVDA) 3.15%
Alliance Resource Partners (ARLP) 2.61%
Ace Limited (ACE) 2.55%
Nokia (NOK) 2.25%
