3 Dividend Paying Railroad Stocks You May Count On

Industry Overview - The rail industry is facing challenges such as inflation-induced elevated interest rates, supply-chain disruptions, and economic growth slowdown, leading most players to focus on cost reduction to drive profitability [1][3] - Despite these challenges, the industry has gained 13.8% over the past year, but this is lower than the S&P 500 Index's 19.9% appreciation [3] Company Performance - Union Pacific Corporation (UNP), Canadian National Railway Company (CNI), and Norfolk Southern Corporation (NSC) have consistently paid dividends, demonstrating a pro-shareholder stance [4] - UNP has a market capitalization of $152.07 billion and has paid dividends for 125 consecutive years, with a recent 3% dividend hike to $1.34 per share [7][8] - CNI has a market capitalization of $72.65 billion and pays a quarterly dividend of $1.23 per share, with a payout ratio of 46% [10][11] - NSC has a market capitalization of $56.53 billion and pays a quarterly dividend of $1.35 per share, with a payout ratio of 49% [13][14] Dividend and Share Repurchase Activities - In 2022, UNP paid $3.16 billion in dividends and repurchased shares worth $6.28 billion, while in 2023, it returned $3.9 billion to shareholders [9] - CNI paid dividends of C$2 billion and repurchased shares worth C$4.71 billion in 2022, with similar activities in 2023 and the first half of 2024 [12] - NSC paid dividends worth $1.23 billion in 2023 and repurchased shares worth $622 million, indicating a commitment to shareholder value [15][16]