Traffic is lower for the railroad industry. This company's comparables are looking better than those of the industry as a whole. The company offers a strong 2.7 percent dividend yield. By utilizing an option strategy, this yield can be more than doubled.
CSX (NASDAQ:CSX) is one of the US's biggest railroad companies, and the company offers strong income potential for investors. By using option strategies, investors can increase their income stream derived from CSX. With a market capitalization of $25 billion, CSX is the second-biggest publicly traded US railroad (after Union Pacific (NYSE:UNP), which has a market capitalization of $69 billion). CSX and Union Pacific are not direct competitors though - CSX serves the Eastern US (Coast to Chicago / St. Louis / Memphis / New Orleans), whereas Union Pacific's tracks are headed from these cities toward the West Coast of the US.
Source: Seeking Alpha
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D4L |
Monday, April 04, 2016
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