Berkshire Hathaway Invests $1.8 Billion in Nucor, Dividend King with 52-Year Record of Annual Dividend Increases

Warren Buffett's Berkshire Hathaway invested over $1 billion in Nucor, a steelmaker with a 52-year dividend streak. Nucor's use of electric arc furnaces and focus on recycled scrap metal make it a leader in the steel sector. With steel prices rising and multiple growth catalysts on the horizon, Nucor is poised to deliver earnings growth and share price appreciation. The stock's low valuation and durable dividend make it a worthwhile option for income-seeking investors.

Warren Buffett's Berkshire Hathaway has made a significant investment in Nucor (NUE), a leading steelmaker known for its 52-year dividend streak. The investment, disclosed in Berkshire's Q2 13F filing, amounts to over $1 billion, highlighting Buffett's confidence in Nucor's long-term growth prospects. This move comes amidst rising steel prices and multiple growth catalysts poised to benefit Nucor.

Nucor's strategic focus on electric arc furnaces and recycled scrap metal positions it as a leader in the steel sector. The company's innovative approach to steelmaking not only reduces environmental impact but also enhances operational efficiency. With steel prices on the rise and demand for infrastructure materials increasing, Nucor is well-positioned to capitalize on these trends.

The investment aligns with Berkshire's strategy of targeting U.S.-based commodity companies with long-term growth potential. Nucor's elevated forward P/E ratio of 17.5 underscores investor optimism, balancing near-term cost challenges against anticipated pricing power from tariffs and AI sector tailwinds [1]. Despite industry margin pressures, Nucor's exposure to AI-driven demand and potential benefits from U.S. steel tariffs could support its long-term outlook.

Market optimism is reflected in Nucor's stock performance. Following the investment disclosure, Nucor's stock rose 0.87% on August 19, 2025, with a trading volume of $0.2 billion, ranking 477th among stocks [1]. The stock's valuation suggests investors are factoring in a premium for its role in emerging technology infrastructure.

For income-seeking investors, Nucor's durable dividend offers an attractive option. The company's consistent dividend payouts, coupled with its strategic positioning in the steel sector, make it a worthwhile addition to portfolios. As steel prices continue to rise and infrastructure demand grows, Nucor is poised to deliver earnings growth and share price appreciation.

Investment Advice: While the deal remains speculative, investors should monitor regulatory developments and Nucor's share price for signs of a potential Berkshire bid. A strategic allocation to Nucor could position portfolios to benefit from this potential catalyst.

References:
[1] https://www.ainvest.com/news/warren-buffett-berkshire-hathaway-bets-850m-nucor-ai-infrastructure-demand-lifts-steel-giant-industry-struggles-stock-ranks-477th-0-2b-trading-volume-2508/