Check out Jim Cramer's latest trading recommendations on "Action Alerts Plus".
NEW YORK ( TheStreet) -- When it comes to investing, Jim Cramer told Lindsey Bell at TheStreet.com Thursday that he's looking for good companies with good dividend yields that can grow.
But when it comes to Norfolk Southern (NSC), the railroad just doesn't fit that definition.
Cramer explained that coal has always been the "way of the rail," as it was simply too heavy to be shipped via any other means. But with coal now going away as a baseline fuel for America's power generation, shares of Norfolk Southern are priced too high for what remains.Cramer called the transition from coal to natural gas as "remarkable" and said that rival Union Pacific (UNP) has now become the better railroad as it relies far less on coal and ships a broader portfolio of goods. Watch the full Cramer interview
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV