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CSX Boosts Investors' Wealth, Offers 10% Dividend Hike

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In a shareholder-friendly move, CSX Corporation (CSX - Free Report) has announced a hike in its dividend payout. CSX’s board of directors has approved a dividend hike of 10%, thereby raising its quarterly cash dividend from 10 cents per share to 11 cents. The raised dividend will be paid out on Mar 15, 2023, to all its shareholders of record as of Feb 28, 2023. The move reflects CSX’s intention to utilize free cash to enhance its shareholders’ returns.

CSX Corporation Dividend Yield (TTM)

 

CSX Corporation Dividend Yield (TTM)

CSX Corporation dividend-yield-ttm | CSX Corporation Quote

CSX has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. In February 2022, CSX hiked its dividend 7.5% to 10 cents per share.

In 2022, CSX rewarded its shareholders through a combination of cash dividends ($852 million) and share repurchases ($4,731 million). Continuing the shareholder-friendly approach, the company rewarded its shareholders through a combination of dividends ($839 million) and share buybacks ($2,886 million) in 2021. In 2020, CSX paid out $797 million in dividends and repurchased shares worth $867 million.

Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like CSX, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario. 

CSX management’s decision to increase its quarterly dividend payout reflects the company’s commitment toward boosting shareholder value apart from underlining confidence in its business. We believe that such shareholder-friendly initiatives boost investor confidence and positively impact this Zacks Rank #3 (Hold) stock's bottom line.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Following the trend, other companies in the Zacks Transportation sector are rewarding their shareholders with dividend payouts or share buyback programs.

Earlier this month, Knight-Swift Transportation Holdings Inc.'s (KNX - Free Report) board of directors approved a dividend hike of 16.7%, thereby raising its quarterly cash dividend from 12 cents per share to 14 cents. The raised dividend is anticipated to be paid out on Mar 27, 2023, to all its shareholders of record as of Mar 3, 2023. The move reflects KNX’s intention to utilize free cash to enhance its shareholders’ returns.

Last month, J.B. Hunt Transport Services, Inc.'s (JBHT - Free Report) board of directors approved a dividend hike of 5%, thereby raising its quarterly cash dividend from 40 cents per share to 42 cents. The raised dividend will be paid out on Feb 24, 2023, to all its shareholders of record as of Feb 10, 2023. The move reflects JBHT’s intention to utilize free cash to enhance its shareholders’ returns.

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