Value investors looking for stable buy-and-hold stocks that offer reliable income will find a lot to love in freight railroad stocks. While the industry does face potential headwinds with declining coal volumes, the best railroad stocks are a play on the rebounding economy and the shale oil and gas boom. Coal once was the lifeblood of freight railroads, but as energy companies turned to cleaner power generation, King Coal has been supplanted by natural gas. While the decline in coal shipments has had an impact of railroad revenues, the recent shale oil and gas boom is helping offset that lost business.
Shippers, however, do not have a lot of alternatives. Trucking industry capacity is extremely tight and railroads can move a ton of freight 476 miles on a single gallon of diesel fuel. Railroads offer a cost effective alternative to trucks particularly in the intermodal segment — freight that is shipped in containers. That said, here are three railroad stocks to ride now: CSX (CSX), Norfolk Southern (NSC) and Union Pacific (UNP).
Source: InvestorPlace
Related Articles:
- 4 Higher Yielding Basic Materials Stocks With Growing Dividends
- 7 Dividend Growth Stocks That Could Make You Wealthy
- 12 High-Yield Managed Distribution Policy Funds
- The 2013 Elite Dividend Stocks List
- 6 High-Yield Dividend Achievers With 25 Years of Increases
Dividend Growth Stocks News
- Top Dividend Stocks To Consider In April 2025 - simplywall.st - 4/1/2025
- Top 3 UK Dividend Stocks To Consider For Your Portfolio - Yahoo Finance - 4/1/2025
- 3 Dangerously High-Yielding Dividend Stocks That Could Burn Your Portfolio - Barchart.com - 4/1/2025
- 3 Dangerously High-Yielding Dividend Stocks That Could Burn Your Portfolio - TradingView - 4/1/2025
- These High-Yielding Dividend Stocks are Already in the $1 Trillion Club and Have Plenty of Room to Keep Growing - AOL.com - 4/1/2025
- Cisco Systems, Inc. (CSCO) Dividend Stock Analysis - 3/28/2025
- Sysco Corporation (SYY) Dividend Stock Analysis - 3/21/2025
- Union Pacific Corporation (UNP) Dividend Stock Analysis - 3/14/2025
- Kellogg Company (K) Dividend Stock Analysis - 3/7/2025
- Texas Instruments Inc. (TXN) Dividend Stock Analysis - 2/28/2025
3 Railroad Stocks for Steady Dividends & Growth
Posted by D4L | Wednesday, November 05, 2014 | ArticleLinks | 1 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Hi, Dividends 4 Life.
It doesn't get much more boring than the rails … and that's what's great about them. I have a small position in NSC and would certainly buy more if the price would ease back down. GE is another company that is benefitting from the growth in rail traffic that I have my eye on. Thanks for the article.
Goosemann Jones
Flight to Dividends Blog