Steel company Reliant has grown dividends for 15 years. Monty Rakusen/DigitalVision via Getty Images Introduction Over the last couple of months, money in the market has rotated away from technology stocks. The “Magnificent 7” large cap technology stocks — Alphabet Inc. ( GOOG ), Amazon.com Inc. ( AMZN ), Apple, Inc. ( AAPL ), Meta Platforms, Inc. ( META ), Microsoft Corporation ( MSFT ), NVIDIA C...
Steel company Reliant has grown dividends for 15 years. Monty Rakusen/DigitalVision via Getty Images Introduction Over the last couple of months, money in the market has rotated away from technology stocks. The “Magnificent 7” large cap technology stocks — Alphabet Inc. ( GOOG ), Amazon.com Inc. ( AMZN ), Apple, Inc. ( AAPL ), Meta Platforms, Inc. ( META ), Microsoft Corporation ( MSFT ), NVIDIA Corporation ( NVDA ), and Tesla, Inc. ( TSLA ) — have been stalling, but under the surface, money is flowing into other sectors, particularly the commodity sector. Despite a recent pullback, the SPDR S&P Metals and Mining ETF ( XME ) is up about 35% in just the last 3 months from its low in mid-November. Commodities futures do not make sense for dividend growth or income investors, but there are several companies that people seeking dividend growth can invest in to benefit from the rotation into commodities. Miners like Royal Gold ( RGLD ), which I recommended back in September , clearly benefit from a rise in gold and silver. And there are other materials stocks outside the precious metals area that benefit as well: Steel Dynamics, Inc. ( STLD ), Nucor Corporation ( NUE ), and the stock I’ll talk about today: Reliance, Inc. ( RS ). Reliance’s Business The company’s history goes back to February 1939, when it operated a single metals service center that fabricated steel reinforcing bar in Los Angeles. The company went public in September 1994, and in February 2024, the company changed its name from Reliance Steel & Aluminum Company to Reliance, Inc. As a fabrication company, the company purchases aluminum, carbon, stainless and alloy steel, and other metal products from mills and then processes it to customer specifications. Reliance operates in 320 locations across 41 U.S. states and 10 foreign countries. The company focuses on smaller customers — with 125,000 customers across a variety of industries, including non-residential construction, aerospace, transportation, energy...