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NEW YORK (
) -- When it comes to investing, Jim Cramer told Lindsey Bell at
Thursday that he's looking for good companies with good dividend yields that can grow.
But when it comes to
, 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
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
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.
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