CSX Corporation (NASDAQ: CSX) will be trading an ex-dividend for the next 4 days. Before the 27th. Buy November stocks to receive this dividend, which will be released on Nov.. December is paid out.
The next dividend payment from CSX is $ 0. 26 per share, a year ago when the company paid a total of $ 1. 04 to the shareholders. Looking at the last 12 months of distributions, CSX has a trailing return of approximately 1. 1% on the current share price of $ 91. 54. Dividends are a significant contributor to long-term owners’ return on investment, but only if the dividend continues to be paid. We have to see if the dividend is covered by earnings and if it is growing.
If a company pays more dividends than it deserves, the dividend can no longer be sustainable – hardly an ideal situation. Fortunately, CSX’s payout ratio is modest at just 28% of earnings. A useful secondary test can be to assess whether the CSX has generated enough free cash flow to be able to afford its dividend. It paid out 31% of its free cash flow as dividends, which is a comfortable payout ratio for most companies.
It is gratifying to see that the dividend is covered by both earnings and cash flow. This generally suggests that the dividend will be sustainable as long as earnings don’t fall steeply.
Click here to view the company’s payout ratio and analyst estimates of future dividends.
Companies with strong growth prospects tend to be the best dividend payers because it’s easier to grow dividends when earnings per share improve. Investors love dividends. So if earnings are going down and dividends are going down, expect a stock to sell heavily at the same time. Fortunately for readers, CSX earnings per share have grown 13% per year over the past five years. Earnings per share have grown rapidly and the company keeps much of its earnings in business. This makes it easier to finance future growth efforts and we think this is an attractive combination. In addition, the dividend can be increased at any time later.
Many investors rate a company’s dividend performance by rating how much dividend payments have changed over time. CSX has averaged 13% dividend growth per year for the past 10 years. Both earnings per share and dividends have grown rapidly lately, which is very good to see.
Should investors buy CSX for the upcoming dividend? CSX has grown its profits quickly and has a conservatively low payout ratio, which means it is heavily reinvesting in its business. a sterling combination. It is a promising combination that this company deserves closer attention.
With that in mind, a critical part of doing a thorough stock analysis is being aware of the risks that stocks are currently exposed to. Case in point: we discovered two warning signs related to CSX that you should be aware of.
We wouldn’t recommend buying just the first dividend stock you see, however. Here’s a list of interesting dividend stocks with a yield greater than 2% and an upcoming dividend.
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NASDAQ, Dividende, Allegiance Bancshares, NASDAQ: ABTX
World News – AU – CSX (NASDAQ: CSX) has a lot going for it. 26 dividend
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– Be sure to check out Allegiance Bancshares, Inc. . (NASDAQ: ABTX) Before an ex-dividend goes
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