Railroad Stocks Are Poised to Gain Market Share
Oct 31st 2013 11:31AM
Updated Oct 31st 2013 11:32AM
North America's Class I railroads have reported extraordinary increases in their efficiency, as evidenced by their operating ratios, the total proportion of revenue spent on expenses. Over the last two decades since deregulation, railroads have been eliminating underperforming lines, modernizing their systems, and generally making their operations more attractive. The more efficient railroads can be, the better able they are to compete in the intercity freight market.
As railroads continue to bring down costs, the rates they can offer customers look ever more efficient. At the same time, the rail industry's biggest competitor in intercity freight -- trucks -- will suffer. Trucking will contend with stricter and stricter environmental regulations that push costs up, requiring truckers to adopt expensive new systems to deal with carbon and particulate pollution. In the following video, Motley Fool contributor Daniel Ferry assesses the incredible successes the rail industry has achieved and the opportunities it faces.
Like railroads for the dividend? Check out these dividend stocks
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.
The article Railroad Stocks Are Poised to Gain Market Share originally appeared on Fool.com.Fool contributor Daniel Ferry owns shares of Canadian National Railway. The Motley Fool recommends Canadian National Railway. The Motley Fool owns shares of CSX. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.