The election of Donald Trump and the promises of higher economic growth have been a boon to America’s industrial base.
And with data finally starting to show growth returning in spades, it’s been a boon to Dividend.com’s Best Dividend Stocks List’s transportation pick. With its 32,000 miles of irreplaceable rail lines, our chosen firm has continued to see rising freight volumes and profits as American businesses ship more goods throughout the country and toward critical shipping ports. These rising cash flows have already allowed our pick to increase its dividend by 10% since making our selection back in the first week of December 2016.
See our original article on our pick here.
But more could be in store for our future dividend achiever. Thanks to a falling dollar and steadily rising oil prices, our railroad pick is set to profit even more as U.S. exports continue to increase further and energy producers tap into America’s vast shale formations. Thanks to its extensive portfolio of rail lines, our pick is set to capitalize on these opportunities. Due to these trends and the continued growth of America’s economy, our railroad pick is constructed to provide investors with more in the way of dividend increases and gains.
To summarize, here are five reasons why you should own this stock:
- Complete monopoly and irreplaceable assets over the area in which it operates.
- A burgeoning dividend contender with roughly a decade’s worth of dividend increases.
- Massive customer base of over 10,000 shippers, manufacturers and other businesses.
- Big winner from global economic growth – with earnings forecasted to surge by nearly 11% next year.
- Ideal payout ratio of 42% and growing yield of 2%.