Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
The coronavirus has certainly been a major headache for the economy and many companies. All the social distancing, lockdowns and work-from-home orders have created a very challenging environment for operation. But some firms have been able to navigate this better than others. And that includes our Best Dividend Stocks List pick in the transportation sector.
While many firms and rivals have suffered, our pick has been able to lean on its near monopoly position. With its massive moat of railway lines that crisscross all of America, our pick has been able to make the most of whatever rail traffic is left. If you’re shipping anything, it’s going to cross our pick’s system at some point. This has helped it keep profits stable, while many other industries and manufacturers have slipped. And thanks to its investments in technology and network upgrades, margins at the firm have never been better.
But our pick has some growth potential on the horizon as well.
It seems that manufacturing activity is currently picking up. With key gauges of business activity turning towards expansion, our pick should be able to see growth and shipment numbers surge on its system. Meanwhile, a new infrastructure plan is being developed by the Trump administration. Here again, the boost in spending should benefit our pick and its investors.
With serious dividend growth behind it, stability of current profits and potentially high growth returning on the horizon, our pick makes an ideal selection for dividend seekers in the current environment.
To summarize, here are five reasons why you should own this stock:
1. Operates a logistics monopoly of irreplaceable assets throughout the entire country.
2. Paid dividends for more than a century and grew that payout five times in the last eight quarters!
3. Thanks to improvements to its operating model and new tech upgrades, its EPS continues to rise during the current constrained manufacturing environment.
4. Its new plan is expected to help improve efficiency, downtimes and margins even further.
5. Healthy payout ratio of 51% and growing yield of 2.22%.
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