EbeneInfo – AU – There’s a lot to like about CSX (NASDAQ: CSX) coming soon $ 0 US26 Dividend

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CSX Corporation (NASDAQ: CSX) is set to trade ex-dividend in the next 4 days Investors can buy shares before November 27 in order to be eligible for this dividend, which will be paid December 15th

CSX’s next dividend payout will be US $ 026 per share, off the back of last year when the company paid a total of US $ 104 to shareholders Looking at the last 12 months of distributions, CSX has a final yield of about 11% on its current price of $ 91.54 Dividends contribute a great deal to investment return for long term holders, but only if the dividend continues to be paid We need to see if the dividend is covered by earnings and if it increases

If a company pays more dividends than it has earned, then the dividend can become unsustainable – hardly an ideal situation Fortunately, CSX’s payout ratio is modest, at only 28% of profits A useful secondary check may be to assess whether CSX generated enough free cash flow to pay its dividend It distributed 31% of its free cash flow as dividends, a comfortable level of distribution for most companies

It is encouraging to see that the dividend is covered by both earnings and cash flow.This generally suggests that the dividend is sustainable, as long as profits do not fall precipitously

Click here to view the company’s payout ratio, as well as analysts’ estimates of its future dividends

Firms with strong growth prospects usually make the best dividend payers, as it’s easier to raise dividends when earnings per share improve Investors love dividends, so if earnings fall and dividend is reduced, expect a stock to sell heavily at the same time Luckily for readers, CSX’s earnings per share have grown 13% per year over the past five years Earnings per share have grown rapidly and the company is keeping the majority of its profit in the business This will make funding easier future growth efforts and we think this is an interesting combination – and the dividend can always be increased later

Many investors will assess a company’s dividend performance by evaluating how dividend payments have changed over time CSX has generated dividend growth of 13% per year on average over the past 10 years Both earnings per share and dividends have grown rapidly lately, which is great to see

Should investors buy CSX for the next dividend? CSX has grown its profits at a rapid pace and has a rather low payout ratio, which implies that it is reinvesting heavily in its business; a sterling combination It is a promising combination that should mark this company worthy of special attention

With this in mind, an essential part of in-depth research on stocks is to be aware of the risks that stocks currently face. Concrete example: we have spotted 2 warning signs for CSX that you should be aware of

We don’t recommend, however, that you just buy the first dividend stock you see. Here is a list of interesting dividend stocks with a yield above 2% and a dividend coming

Promoted If you are looking to trade CSX, open an account with the cheapest platform * approved by professionals, Interactive Brokers Their clients from over 200 countries and territories trade stocks, options, futures , currencies, bonds and funds worldwide from a single integrated account

This Simply Wall St article is general in nature It does not constitute a recommendation to buy or sell shares, and does not take into account your goals or your financial situation We aim to provide you with a focused analysis long term based on fundamental data Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information Simply Wall St does not have any positions in the stocks mentioned * Interactive Brokers is ranked as the cheapest broker by StockBrokerscom Online Annual Review 2020 Do you have any comments on this article? Concerned about the content? Contact us directly You can also send an email to the editorial team @ Simplywallstcom

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NASDAQ, Dividend, Allegiance Bancshares, NASDAQ: ABTX

EbeneInfo – AU – There’s a lot to like about CSX (NASDAQ: CSX) Coming $ 0 US26 Dividend

Source: https://simplywall.st/stocks/us/transportation/nasdaq-csx/csx/news/theres-a-lot-to-like-about-csxs-nasdaqcsx-upcoming-us026-div

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