Norfolk Southern’s Stock Offers Promising Dividend Yield
On Thursday, shares of Norfolk Southern Corp (Symbol: NSC) yielded over 2% based on its quarterly dividend of $5.4, with stock prices dropping to as low as $268.39. For investors, dividends represent an essential aspect of stock value, having historically contributed significantly to overall market returns. Consider this scenario: if you had invested in the S&P 500 ETF (SPY) on December 31, 1999, you would have paid $146.88 per share. By December 31, 2012, that same share would have been worth $142.41, marking a decline of $4.67 over 13 years. Despite this decrease, dividends paid out totaled $25.98 per share, resulting in a total return of 23.36%. When factoring in reinvested dividends, the average annual return merely reached about 1.6%. Thus, a yield exceeding 2% like that of Norfolk Southern seems quite appealing, provided it remains sustainable. This company is part of the S&P 500, enhancing its reputation as a large-cap entity in the index.
Dividend amounts can fluctuate significantly based on each company’s profitability. In the context of Norfolk Southern Corp, examining the historical dividend chart for NSC can help potential investors assess the likelihood of the current dividend continuing, thereby influencing the expectation of a reliable 2% annual yield.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
