10 Best Dividend Stocks to Buy for Passive Income

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6. Nucor Corporation (NYSE:NUE)

Number of Hedge Funds: 59

Dividend Yield as of June 26: 0.94%

On June 24, KeyBanc upgraded Nucor Corporation (NYSE:NUE) to Overweight from Sector Weight. It also set a $274 price target on the stock. The firm expects real carbon steel demand to grow 2% year over year in 2026, while finished steel imports are projected to decline 15% compared with 2025. Analyst Samuel McKinney said steel buyers continue to face tight supply conditions because of a “virtually non-existent” spot market and limited contract allocations. KeyBanc also views Nucor shares as “compelling” following the stock’s 10% decline over the previous six trading days. The firm believes the “historically tight domestic supply situation” will support hot-rolled coil pricing through September.

Earlier, on June 22, Morgan Stanley raised its price recommendation on Nucor to $258 from $227. It reiterated an Equal Weight rating on the shares. The firm increased its steel price forecasts to reflect the extended supply-driven rally. Even so, it believes the expectation of higher steel prices is already reflected in the valuations of stocks across the sector. Analyst Carlos De Alba added that Commercial Metals (CMC) remains Morgan Stanley’s only Overweight-rated steel stock in North America, as the firm believes concerns about new rebar supply are overly discounted in the shares.

Nucor Corporation (NYSE:NUE) manufactures steel and steel products and operates facilities across the United States, Canada, and Mexico. The company also produces and procures ferrous and non-ferrous materials, primarily for use in its steel manufacturing business.

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