In a shareholder friendly measure, CSX Corporation (NASDAQ:CSX) CSX announced an 8% hike in its quarterly dividend. The move underscores the company’s sound financial position and its commitment to reward shareholders.
CSX raised its dividend to 28 cents per share (or $1.12 annually) from 26 cents. The amount will be paid out on Mar 15, 2021 to shareholders of record as of Feb 26.
Despite coronavirus-related adversities, the company has continued to reward its shareholders. In October 2020, CSX’s board approved a new share buyback program worth $5 billion. This is in addition to approximately $1.1 billion already remaining under the existing share repurchase program.
Previously, in February 2020, the company announced an 8% dividend hike to 26 cents per share. In 2020, it repurchased 13 million shares for $867 million.
Investors always prefer an income-generating stock. Hence a high-dividend-yielding one is obviously much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments to put their money on.
Zacks Rank & Key Picks
CSX carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are ArcBest (NASDAQ:ARCB) Corp. ARCB, Saia (NASDAQ:SAIA), Inc. SAIA and Herc Holdings (NYSE:HRI) Inc. HRI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of ArcBest, Saia and Herc Holdings have rallied more than 69%, 52% and 77% in the past six months, respectively.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CSX Corporation (CSX): Free Stock Analysis Report
ArcBest Corporation (ARCB): Get Free Report
Saia, Inc. (SAIA): Free Stock Analysis Report
Herc Holdings Inc. (HRI): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research