There’s an interesting problem facing the United States right now. Thanks to numerous factors – COVID-19, weather and labor issues – there are a record number of container ships sitting off the ports of California and along the Gulf Coast. , creating a backlog of goods and supply shortages across the country. At the same time, thanks to rising manufacturing in the U.S. and the re-opening of the economy, there are plenty of goods needed to be shipped.
All of this has created a strong operating environment for the major railroads including our Best Dividend Stocks List pick.
With one of the largest coast-to-coast networks of rail lines, our pick is making the most of the current environment with increased volumes and earnings. With one of the best margins in the business, this has resulted in steady profits, strong cash flows and robust shareholder rewards over the last few quarters.
Better still, the goods sitting off the United State’s coasts have created an enormous backlog of future shipping needs. With its massive network of rail assets, our pick is poised to be one of the major recipients of that future business.
All of this is a win-win for investors.
To summarize, here are five reasons why you should own this stock:
- Operates a logistics monopoly of irreplaceable assets throughout the entire country.
- Rising freight volumes helped EPS jump 60%+ versus the same quarter a year ago!
- Technology continues to improve operating ratio to an industry leading 55%!
- Big winner from current “log jam” in the Pacific with a record number of ships offshore.
- Healthy payout ratio of 42% and growing yield of 1.96%.
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