In a move to prioritize its shareholders, CSX Corporation has made an investor-friendly revelation, heightening the percentage of its dividend pay-out. The board of directors at CSX has given the green light for a 9.1% surge in the quarterly cash dividend, elevating it from 11 cents per share to 12 cents. This increase is scheduled for disbursement on Mar 15, 2024, reaching all shareholders of record as of Feb 29. By taking such action, CSX demonstrates its commitment to using available funds to enhance returns for its investors.
CSX Corporation Dividend Yield (TTM)
CSX Corporation dividend-yield-ttm | CSX Corporation Quote
CSX has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. In Feb 2023, CSX hiked its dividend by 10% to 11 cents per share. Moreover, in Feb 2022, the company raised its dividend by 7.5% to 10 cents per share.
In terms of fiscal figures, CSX has been a provider of lucrative rewards for its investors. In 2023, the company distributed a combination of cash dividends ($882 million) and share repurchases ($3,482 million). Similarly, in 2022, CSX rewarded its shareholders through a combination of cash dividends ($852 million) and share repurchases ($4,731 million). Staying true to its shareholder-friendly philosophy, in 2021, the company rewarded its investors through a blend of dividends ($839 million) and share buybacks ($2,886 million).
Dividend-paying stocks guarantee a reliable income stream and are less prone to significant price fluctuations. Companies like CSX, which offer dividends, are reliable choices for wealth creation as their pay-outs serve as a safeguard amid economic uncertainty, such as the current scenario.
The decision made by CSX management to augment its quarterly dividend pay-out underscores the company’s dedication to amplifying shareholder value, a hallmark of confidence in its business. These shareholder-focused endeavors are likely to bolster investor faith and positively influence the company’s financials. Visit the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CSX is not the sole player within the Zacks Transportation sector that has been rewarding its shareholders through dividend payouts or share buyback programs.
Others include Wabtec Corporation (WAB) which, concurrent with its fourth-quarter 2023 earnings release on Feb 14, 2024, declared a 17.6% dividend hike, raising its quarterly cash dividend from 17 cents per share to 20 cents, accompanied by a $1 billion share buyback authorization.
On Feb 2, 2024, Knight-Swift Transportation Holdings Inc. (KNX) board of directors announced a dividend increase of 14.2%, resulting in a raise of its quarterly cash dividend from 14 cents per share to 16 cents. Remarkably, KNX has increased its quarterly dividend five times within the past five years, culminating in a 167% overall rise.
On Jan 26, 2024, GATX Corporation (GATX) revealed a near 5.5% improvement in its dividend payment. The company’s board of directors has sanctioned a surge in its quarterly cash dividend from 55 cents per share to 58 cents. This escalated dividend will be disbursed on Mar 31, 2024, to all its shareholders of record as of Mar 1. 2024 marks the 106th consecutive year that GATX has been disbursing dividends.
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CSX Corporation (CSX) : Free Stock Analysis Report
Knight-Swift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
GATX Corporation (GATX) : Free Stock Analysis Report
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