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CSX Rewards Shareholders with an 8% Increase in Dividend

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In a shareholder friendly measure, CSX Corporation (CSX - Free Report) announced an 8% hike in its quarterly dividend. The move underscores the company’s sound financial position and its commitment to reward shareholders.

CSX raised its dividend to 28 cents per share (or $1.12 annually) from 26 cents. The amount will be paid out on Mar 15, 2021 to shareholders of record as of Feb 26.

Despite coronavirus-related adversities, the company has continued to reward its shareholders. In October 2020, CSX’s board approved a new share buyback program worth $5 billion. This is in addition to approximately $1.1 billion already remaining under the existing share repurchase program.

Previously, in February 2020, the company announced an 8% dividend hike to 26 cents per share. In 2020, it repurchased 13 million shares for $867 million.

 

Investors always prefer an income-generating stock. Hence a high-dividend-yielding one is obviously much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments to put their money on.

Zacks Rank & Key Picks

CSX carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are ArcBest Corp. (ARCB - Free Report) , Saia, Inc. (SAIA - Free Report) and Herc Holdings Inc. (HRI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of ArcBest, Saia and Herc Holdings have rallied more than 69%, 52% and 77% in the past six months, respectively.

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CSX Corporation (CSX) - free report >>

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