Continue to site >
Trending ETFs


CSX Hikes Dividend by 8% After Mixed Earnings

CSX Corporation (CSX) provides rail, intermodal and rail-to-truck transload services and solutions to a broad array of markets. With a network connecting two-thirds of the U.S. population, the company has played a critical role in the nation’s economic expansion and industrial development over the past 200 years.

The company generated most of its revenue from chemicals (21%), intermodal (17%), coal (12%), agricultural products (12%) and automotive products (10%) during the third quarter of 2020. Most of these revenues are generated under contracts with customers on a rate per carload, container or ton-basis based on the length of haul and commodities carried.

Mixed Earnings During COVID-19

CSX Corporation reported fourth-quarter revenue that fell by 2.1% to $2.83 billion, beating consensus estimates by $40 million, but GAAP earnings of $0.99 per share missed consensus estimates by three cents per share. Intermodal growth was more than offset by lower fuel surcharge revenue and declines in coal transportation.

Despite COVID-19-related challenges in 2020, there are signs of an uptick in 2021. The Association of American Railroads reported U.S. rail traffic up by 4.7% in the first week of 2021 driven by grains, metallic ores, and metals and chemicals.

The company raised its quarterly dividend by 7.7% to $0.28 per share, which represents a 1.2% forward yield. The dividend is payable on March 15, 2021 to shareholders on record as of February 26, 2021.

Want to keep track of all dividend increases? Subscribe to and have complete access to our exclusive dividend increases list here.