#1 - Vulcan Materials (NYSE:VMC)
Leading off this list of concrete stocks is Vulcan Materials Co. (NYSE: VMC). The company is primarily known as the “nation’s largest producer of construction aggregates” (e.g., crushed stone, sand, and gravel). But the company is also a major producer of ready-mixed concrete.
Vulcan owns and operates ready-mixed concrete facilities in six states in addition the District of Columbia and the U.S. Virgin Islands. The company also has strong relationships with local producers in markets where it doesn’t sell ready-mixed concrete.
Vulcan has a strong cash flow that gives the company the ability to be flexible in its capital spending. And for investors who are looking for companies with strong fundamentals, Vulcan has an investment-grade balance sheet that supports future growth.
In the last five years, VMC stock has climbed over 50%. And in each of those years, Vulcan has increased its dividend. The dividend yield of 0.88% isn’t particularly impressive. But with a payout ratio of 38% and a 3-year growth rate of 8%, it looks to be highly sustainable. The stock has a beta of 0.74.
About Vulcan Materials
Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The company provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities.
Read More - Current Price
- $284.61
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $280.46 (1.5% Downside)
