Railroad stocks are poised for resurgence despite Wednesday%u2019s post-earnings slips for Union Pacific and CSX. The fundamentals for the industry are solid -- and that includes other railroad operators like Kansas City Southern and Norfolk Southern.
The third largest U.S. railroad operator CSX announced Wednesday it would boost its quarterly dividend by 8%, from 24 cents to 26 cents, returning more of its earnings to shareholders.
Stocks vaulted higher Tuesday as industrial bellwethers Alcoa and CSX reassured the market about the pace of the economic recovery. All three major averages extended their winning streaks.
Railway operator CSX said second-quarter profit increased 47% or $414 million from the previous quarter. CSX had predicted a 96 cents a share increase, but exceeded expectations with the $1.07 a share increase. Revenue rose 22%, pushed by an improving economy and higher prices.