Thanks for signing up for DividendStocks.com! It's the daily newsletter built for dividend and income investors. Before we can begin sending your daily updates, there’s one quick step left. Please confirm your subscription using the link below so our emails reach your inbox. Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Let’s get your dividend journey started! Discover Top Income-Generating Stocks Here See you in your inbox soon,
The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
Further Reading from MarketBeat.com
2 Aluminum Stocks Poised for Big Tariff-Related GainsSubmitted by Nathan Reiff. Article Posted: 5/26/2026. 
Key Points
- Section 232 tariffs may pose challenges to companies relying on aluminum imports, but domestic producers and fabricators have an advantage.
- Kaiser Aluminum and Century Aluminum may both benefit from the impacts of tariffs on pricing and demand.
- These two companies play different roles in the domestic aluminum industry, however, and their advantages may not be the same.
- Special Report: Have $500? Invest in Elon’s AI Masterplan
The price of aluminum has surged by nearly 50% over the past year, reaching multi-year highs amid pressures from the Iran war, domestic tariffs, and more. The shutdown of the Strait of Hormuz has had a particularly strong impact, given its critical role in the movement of aluminum through the Middle East and to other parts of the world. Higher aluminum costs have weighed on companies relying on the metal across a variety of industries, including automotive firms like Ford Motor Co. (NYSE: F) and beverage firms like Keurig Dr Pepper (NASDAQ: KDP). These businesses must prepare mitigation strategies if material costs remain elevated in order to protect their margins.
The Wall Street Journal is already raising the alarm about a potential market crash, and Weiss Ratings research points to the first half of 2026 as a particularly rough stretch for certain holdings.
Some of America's most popular stocks could take serious damage as a radical market shift plays out. Analysts at Weiss Ratings have identified five names you may want to remove from your portfolio before this unfolds.
If any of these are in your portfolio, now is the time to review your positions. See the 5 stocks to avoid
On the other hand, domestic aluminum firms like Kaiser Aluminum Corp. (NASDAQ: KALU) and Century Aluminum Co. (NASDAQ: CENX) may be better positioned, particularly thanks to Section 232 tariffs. Kaiser Aluminum Could Benefit From Tariffs and Aerospace Business, But Valuation Is a RiskKaiser Aluminum is a producer of semi-fabricated aluminum products for a range of markets, including aerospace, automotive, electronics, and more. The company's earnings for Q1 2026 were very strong: revenue rose more than 42% year over year (YOY), it delivered an earnings per share (EPS) beat of $1.78, and it posted record EBITDA along with solid full-year guidance. The company is seeing demand strengthen while simultaneously improving operational execution through better facility performance. This has allowed the firm to expand margins by about 850 basis points YOY. Additionally, free cash flow for the first quarter reached $69 million, and the firm ended the quarter with approximately $596 million in liquidity, giving it plenty of flexibility going forward. With Section 232 tariffs including a 50% levy on many aluminum imports and aluminum-based products, domestic firms like Kaiser could benefit. Still, as a specialized aluminum products company, Kaiser may not be particularly dependent on raw aluminum prices. Where Kaiser does stand out, however, is in its significant aerospace and defense business. Demand here is likely to remain strong, and multi-year contracts should provide a meaningful stability buffer—even as the auto segment faces potential headwinds from weaker demand and ongoing tariff volatility. For investors, Kaiser could be a strong industrial materials company with some tariff-related upside and lower risk than a pure commodity producer. Analysts are fairly optimistic, with half calling KALU shares a Buy. However, given that KALU shares are up more than 50% year-to-date (YTD), valuation may be a concern. Indeed, Wall Street expects more than 10% downside potential. Century's Exposure to Tariffs Makes It a Big BeneficiaryWhile Kaiser focuses on aluminum products, Century is primarily an aluminum producer operating smelters across the United States and Europe. That means the firm is heavily exposed to aluminum pricing, and tariffs may give CENX shares a big boost as a result. Century is advantageously positioned because it benefits not only from higher aluminum prices overall due to tariffs, but also from the fact that it does not need to pay tariffs on most of its production, thanks to its domestic focus. The company is planning a new smelter in Oklahoma that could significantly boost its domestic production capacity. Enthusiasm surrounding Century's prospects in the current tariff environment has led to a unanimous Buy rating from all five analysts covering CENX shares, as well as a consensus price target of $80. That target represents not only a 20% premium over recent levels but also roughly double the price at which CENX stock traded at the start of 2026. Still, investors should keep in mind that Century's dependence on tariff-related pricing is significant. If tariffs shift and premiums collapse, the company could see a major hit to earnings and valuation multiples. Further, building a new smelter will cost billions of dollars, and the cash-intensive nature of the project means Century is taking on financing, execution, and construction risks. For investors keen to capitalize on the tariff-related impact on aluminum prices, there is also the option of gaining exposure to the commodity itself. An exchange-traded fund like the Invesco DB Base Metals Fund (NYSEARCA: DBB) holds a portfolio of aluminum futures to track commodity prices directly. This approach removes other company-specific variables from the equation, allowing for a more direct way of gaining exposure to the price of aluminum. However, DBB is exposed to a variety of metals, so it is not aluminum-specific. |
Post a Comment
Post a Comment