Value investors looking for stable buy-and-hold stocks that offer reliable income will find a lot to love in freight railroad stocks. While the industry does face potential headwinds with declining coal volumes, the best railroad stocks are a play on the rebounding economy and the shale oil and gas boom. Coal once was the lifeblood of freight railroads, but as energy companies turned to cleaner power generation, King Coal has been supplanted by natural gas. While the decline in coal shipments has had an impact of railroad revenues, the recent shale oil and gas boom is helping offset that lost business.
Shippers, however, do not have a lot of alternatives. Trucking industry capacity is extremely tight and railroads can move a ton of freight 476 miles on a single gallon of diesel fuel. Railroads offer a cost effective alternative to trucks particularly in the intermodal segment — freight that is shipped in containers. That said, here are three railroad stocks to ride now: CSX (CSX), Norfolk Southern (NSC) and Union Pacific (UNP).
Source: InvestorPlace
Related Articles:
- 4 Higher Yielding Basic Materials Stocks With Growing Dividends
- 7 Dividend Growth Stocks That Could Make You Wealthy
- 12 High-Yield Managed Distribution Policy Funds
- The 2013 Elite Dividend Stocks List
- 6 High-Yield Dividend Achievers With 25 Years of Increases
3 Railroad Stocks for Steady Dividends & Growth
Posted by D4L | Wednesday, November 05, 2014 | ArticleLinks | 1 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
Hi, Dividends 4 Life.
It doesn't get much more boring than the rails … and that's what's great about them. I have a small position in NSC and would certainly buy more if the price would ease back down. GE is another company that is benefitting from the growth in rail traffic that I have my eye on. Thanks for the article.
Goosemann Jones
Flight to Dividends Blog