Norfolk Southern Dividend Stock Analysis

NSC

Norfolk Southern Corp. (NSC) is a class 1 railroad company that dominates the eastern continental US and commands approximately 20,000 miles of rail network in 22 states and the District of Columbia. The company is one of the key players in the transportation industry and provides a great investment opportunity for long-term investors. Norfolk Southern is a dividend contender, having raised dividends for 14 consecutive years, with a 5-year DGR of 10.3%. The current headwinds the crude industry is facing provides a good opportunity to initiate a position in this best-in-class starting yielder.

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8 thoughts on “Norfolk Southern Dividend Stock Analysis

    • Likewise, BSR. I missed out on investing in railroads for years and finally started investing in them last fall. So far I only have CN, but would like to add another one. Glad you liked the analysis.

      cheers
      R2R

    • The weak CAD$ sure is a bummer when you want to buy US stocks. Have a look at CN….its a fantastic company – a lot better than NSC in a lot of ways, wont have the currency problems – in fact, the strong US$ is good since CN has about 1/3 rev from US.

      R2R

  1. RM2R,

    Nice article! I’ve had NSC on my watch list for some time. Great yield in comparison to the competitors, big company, great financials, great payout and growth rate. Tough not to like them, right?

    -Lanny

    • Lanny,
      The starting yield is nothing to complain about – esp when comparing to the peers in the industry. The growth rate is also pretty good, but some other metrics considered like ROE, profitability, margins etc, I think UNP might be a better investment. Will need some qualitative analysis as well – as UNP directly competes with Burlington Santa Fe, while NSC competes with CSX and partly with some of the others.

      R2R

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