In a shareholder-friendly move, CSX Corporation CSX has announced a hike in its dividend payout. CSX’s board of directors has approved a dividend hike of 9.1%, thereby raising its quarterly cash dividend from 12 cents per share to 13 cents. The raised dividend will be paid out on March 14, 2025, to its shareholders of record as of Feb. 28. This move reflects CSX’s intention to utilize free cash to enhance its shareholders’ returns.
CSX, currently carrying a Zacks Rank #4 (Sell), has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. In 2024, CSX rewarded its shareholders through a combination of cash dividends ($930 million) and share repurchases ($2.24 billion). In 2023, CSX paid $882 million as dividends and bought back shares worth $3.48 billion. In 2022, CSX also rewarded its shareholders through a combination of cash dividends ($852 million) and share repurchases ($4.73 billion).
CSX Dividend Yield (TTM)
CSX Corporation dividend-yield-ttm | CSX Corporation Quote
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like CSX, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
Management’s decision to increase quarterly dividend payout indicates the company’s commitment to boosting shareholder value apart from underlining confidence in its business. We believe such shareholder-friendly initiatives boost investor confidence.
CSX is not the only player from the Zacks Transportation sector that has announced a hike in its quarterly dividend this month.
Wabtec Corporation’s WAB board of directors approved a dividend hike of 25%, thereby raising its quarterly cash dividend to 25 cents per share ($1 annualized) from 20 cents ($0.80 annualized). The raised dividend will be paid out on March 7, 2025, to its shareholders of record at the close of business on Feb. 21.
United Parcel Service’s UPS board of directors approved a dividend hike, thereby raising its quarterly cash dividend to $1.64 per share ($6.56 annualized) from $1.63 ($6.52 annualized). The raised dividend will be paid out on March 6, 2025, to its shareholders of record at the close of business on Feb. 18.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
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