The recent market swoons have left many stocks and investors suffering with big losses. But for those firms with huge moats and monopolized assets, the recent market dips haven’t been felt as hard. This includes our Best Dividend Stocks Pick in the transportation sector. It continues to chug right along in the face of the market’s recent downturn.
Despite the trade issues and continued worries, our pick remains steadfast in its ability to generate cash flows and earnings from its immense system of rail lines that crisscross the entirety of America. In fact, during its latest reported quarter, our pick managed to see earnings jump by more than 40% year-over-year as more companies continue to use its system for shipping.
See the original article on our pick here.
The best part is that our transposition pick isn’t done yet.
Several catalysts exist that could continue to push those earnings even higher into the future. For one thing, our pick continues to invest heavily in its system and technology. These moves are already starting to bear fruit as increased operating efficiency and reduced network complexity have boosted profits. Meanwhile, lower fuel costs and the Republican tax plan will send margins into overdrive and will only strengthen our pick’s cash flows, earnings, and dividend growth further.
To summarize, here are five reasons why you should own this stock:
- A complete monopoly of irreplaceable assets over the area in which it operates.
- A burgeoning dividend contender with roughly a decade’s worth of dividend increases – including a nearly 10% boost over the summer and its second increase of this year!
- New operational model is working wonders with a huge 40%+ jump to earnings per share.
- Big winner from the Republican tax plan and lower overall corporate tax rates.
- Healthy payout ratio of 41% and growing yield of 2.11%.
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