The Dividend Daily

Railroad operator Norfolk Southern Corp. (NSC) said late Tuesday that its third quarter profit plunged 41% from last year, hurt by lower shipments of a wide variety of goods amid the economic recession.

The Norfolk, Virginia-based company posted third quarter net income of $303 million, or 81 cents per share, down from $520 million, or $1.37 per share, in the year-ago period.

Revenue plunged 29% to $2.06 billion, while shipping volume fell 20% from last year.

Norfolk Southern shares rose $3.07, or +6.7%, in morning trading Wednesday.

The Bottom Line
The company has a 2.95% dividend yield, based on last night’s closing stock price of $46.05. The stock has technical support in the $40-$41 price area. If the shares can firm up, we see overhead resistance around the $50 price level.

Norfolk Southern Corp. (NSC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.