Price cuts for iron ore and a perceived bottoming out of the economy are helping to lift steel stocks. However, steel prices have plunged from last year's record level as demand has declined. That's caught up with dividends at Steel Dynamics. The minimill company (STLD) makes structural steel and steel-bar products and is one of the largest U.S. metal recyclers. On Tuesday, it slashed its quarterly payout 25%, to 7.5 cents a share from a dime, for an annual saving of some $18 million. It initiated payouts in 2004 and had been enhancing them every year. Shareholders of record June 30 will receive the reduced payout July 10. The ex-dividend date is June 26. Fort Wayne, Ind.-based Steel Dynamics also said that it will sell 27 million shares and offer a $150 million aggregate principal amount of convertible senior notes due 2014. The proceeds from the offerings will help repay a term-loan balance of $552 million, as of March 31. In a note to investors, analyst Brian Yu of Citi Investment Research called the transaction a "net positive" for the company, whose debt has "been an ongoing overhang." Standard & Poor's on Wednesday removed Steel Dynamics from CreditWatch and affirmed its less-than-investment-grade double-B-plus credit rating with a negative outlook. S&P analyst Marie Shmaruk said the rating reflects the company's exposure to highly competitive and cyclical markets, aggressive growth plans that include significant capital expenditures, acquisitions and high debt. On the plus side, Steel Dynamics has a "very low cost position, flexible operations and improved product diversity," Shmaruk added.

There was good news from the REIT world last week. David Simon, CEO of mall owner Simon Property Group (SPG), the nation's largest real-estate investment trust, said Thursday at a New York REIT conference that "it is our desire to pay [an all-cash] dividend very soon" and that 2010 is the target date. This year, Simon has taken advantage of an IRS debt-financing option for cash-strapped REITs, allowing it to pay 90% of its dividend in stock and 10% in cash. Simon added that his company has enough capital to make acquisitions, if it so chooses, and that, after having sold $1.6 billion in new equity recently, has no need to sell more "at this point." No acquisitions are on the horizon just now, he added, although the company is examining a few opportunities. As he put it: "We're being very thoughtful and cautious."