Vulcan Materials Company (NYSE:VMC)

CAPS Rating: 2 out of 5

The Company is a producer of construction aggregates and a major producer of asphalt mix and concrete. Its business consists of the production, distribution and sale of construction aggregates and other construction materials and related services.


Player Avatar MBLacey (< 20) Submitted: 5/21/2009 3:23:07 AM : Outperform Start Price: $39.22 VMC Score: -58.87

Vulcan Materials is the largest producer of aggregates in the US, and also manufactures cement, concrete and asphalt. It should be a good performer with the amount of infrastructure projects required just to keep the vast area of highways in this country in good shape, let alone to modernize and update them to keep up with growing traffic. Other large infrastructure projects are going to require large amounts of cement and concrete as well. Pays a decent dividend, which appears to be safe for now.

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Member Avatar MBLacey (< 20) Submitted: 6/13/2009 7:56:38 PM
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Dividend cut announced on 6-11-2009. Even with the cut, the dividend of .25 will be a little over 2%. Secondary offering priced at 41. Both of these actions will shore up the balance sheet, and infrastructure spending should begin ramping up in 2010. With states cutting infrastructure at the same time as the Federal Government is increasing, there could be some delay or contracts could be spread out farther than currently planned.

Member Avatar MBLacey (< 20) Submitted: 7/22/2011 2:52:55 PM
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I am closing VMC for now - I actually sold the stock in April, with a slight gain from my initial purchase price of $39; however, the dividend cut in 2009 has not been restored by even one penny, and with governments cutting infrastructure spending (no matter how many bridges, roads, etc., are in disrepair and even unsafe), I think it will be at least a couple of years before anyone in power recognizes that infrastructure spending is exceptionally important to the economy and competitiveness worldwide here in this country. At that time, I may reconsider this position.

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