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CSX's Board Clears Stock Split to Attract More Investors

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The board of directors of CSX Corporation (CSX - Free Report) approved a three-for-one common stock split in the form of a stock dividend. Per this Jacksonville, Fl-based railroad operator, each stockholder of record at the close of trading on Jun 18, 2021 will get two additional shares of CSX common stock for each share held as of this record date. The new shares will be distributed among the company’s shareholders on Jun 28.

Management further stated that the regular quarterly dividend of 28 cents per share, which is payable Jun 15, will remain unaffected by this stock split. Going by the current dividend rate, the quarterly dividend (after the split) on the company's common stock will be $9.3 cents per share.

Notably, the company’s shares have gained a massive 276.2% in the past five years, strongly outperforming the industry’s five-year growth of 169.7%.

5-Year Price Performance

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Notably, the motive behind the stock split is to make the company’s stock more affordable as the number of authorized shares of common stock will increase. This, in turn, will likely boost demand for CSX’s shares as investors’ confidence in the stock will be further instilled.

Zacks Rank & Key Picks

CSX presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportationsector are Covenant Logistics Group (CVLG - Free Report) , C.H. Robinson Worldwide (CHRW - Free Report) and United Parcel Service (UPS - Free Report) . While Covenant Logistics and C.H. Robinson sport a Zacks Rank #1 (Strong Buy), UPS carries a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Covenant Logistics, C.H. Robinson and UPS have rallied more than 66%, 15% and 98% in a year’s time, respectively.

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