On Thursday, March 8 U.S. President Donald Trump signed off on tariffs on steel and aluminum imports, but ultimately elected to exclude key allies Canada and Mexico. This was the culmination of a strong effort from Canadian officials, as well as establishment Republicans, to convince the President to make an exception for U.S. allies.
Stelco Holdings Inc. (TSX:STLC) spiked 7% on the day the exemption was announced. Shares were up 2.39% at the bottom of the noon hour on March 9. The Hamilton-based steel company has seen its stock perform extremely well since its initial public offering in November 2017. Revenue climbed 23% to $1.6 billion in 2017 and adjusted EBITDA surged 145% to $216 million. The company also announced a dividend of $0.10 per share representing a 1.5% dividend yield.
Tree Island Steel Ltd. (TSX:TSL), a Vancouver-based steel company, saw its stock jump 8% on the news. Tree Island stock was up 2.88% at the bottom of the noon hour on March 9. The stock also offers a dividend of $0.02 per share with a 3.2% dividend yield.
Russel Metals Inc. (TSX:RUS) stock rose 5% after the exemption was announced. Russel Metals leadership was optimistic that its business would flourish even if Canada was included as a significant portion of its business is within the United States. Shares of Russel Metals were up 2.22% at the bottom of the noon hour on March 9. The stock also offers an attractive dividend of $0.38 per share representing a 5% dividend yield.
