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
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Having a few trusty dividend stocks that you can approach with a "set it and forget it" mindset takes a lot of the stress out of i...
-
REITs don’t just pay out attractive yields; many of these companies are terrific operators too. So not only do investors get to collect a so...
-
It’s in volatility like this that the value of dividends truly shines through. The market could be having a massive sell-off, but when a com...
-
The company reported solid results for its fourth fiscal quarter. The business development company once again covered its dividend payout wi...
-
If you are interested in high-yield dividend stocks, it’s better to focus on a company’s history of growing its dividend rather than just lo...
-
When it comes to stock investing while in retirement, dividend stocks tend to be some of best investments you can make. Not only do they ten...
-
When the average S&P 500 company pays less than two percent, a 6.5%-yielding stock certainly deserves income investors’ attention. A Top...
-
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. Ba...
-
While conventional wisdom holds that you reach for yield, my strategy has been to look first for capital gains, then to management teams tha...
-
There are hundreds of high-yield dividend stocks on the market. At least, that's the case if your definition of high dividend yield isn&...
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