Railroad giant CSX (CSX) is doing a good job of reminding investors that the railroad is still relevant in 2012. The firm boasts 21,000 miles of track spread across the eastern U.S., shipping coal, chemicals and intermodal containers across its network.
Efficiency has been the name of the game at CSX for the past few years. The firm has boosted net profit margins by trimming its biggest costs and working to keep its trains moving on time.>>5 Big Stocks to Trade for Gains In the world of triple-digit crude oil prices, trains make a lot of sense for freight shippers. While trucking (the biggest alternative to rail freight) is generally a more simple solution for a distribution chain, it's also more expensive -- generally four times more expensive than train shipping per ton. That's a material difference as fuel costs cause shipping costs to swell. CSX also has a big advantage in its location. The firm's tracks are focused on the eastern U.S., where the majority of the population is located; that means that products going to the big cities on the eastern seaboard need to use CSX's track. While the railroad industry is pretty highly leveraged, CXS's debt load is better than most. That's helped the firm to continually increase its dividend payout for investors. Right now, the firm pays a 2.72% yield. CXS's next dividend gets paid out on Dec. 14.
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