NSC announced today an increase of $.02 from $0.52 to $0.54/share payable on March 10 to shareholders of record on February 7th.
This was a nice surprise since I wasn't expecting a raise until August. This is the second raise in less than 6 months and my second raise of the year for my portfolio (the fist was OHI).
Since I own 72 shares, this will increase my quarterly income by $1.44.
Ive been considering NSC since I dont own any railroads. What do your thoughts on the valuation at the current levels?
ReplyDeleteNSC has a P/E of 15.6 with a 5-year average of 15.0. S&P Capital gives them a 9% EPS CAGR over the next 3 years. They yield 2.4%. They are sitting not far from their 52-week high. I would consider them fair to slightly overvalued here.
DeleteI didn't think that was their normal increase schedule. Although unexpected increases are always welcome. And you increase was bigger than that, that's a $1.44 extra per quarter. The news keeps getting better.
ReplyDeletethey paid the same dividend for a full year and I think the year before they did two increases so they are back to two increases a year I'm guessing for this year. I'll take any increase I can get. You're right, I meant per quarter.
DeleteUntil now I have only Union Pacific in my watchlist.
ReplyDeleteBut Norfolk Southern is a little bit better, I think so.
Time to put NSC on my watchlist - I´ll hurry me... ;-)
regards and thanks for named this company!
D-S
Hi D-S,
ReplyDeleteI am glad I brought the company to your attention. NSC has a lot of positives going for them.
Take care!