The report noted that among the components of the Dow Jones Transportation Average, CSX stock displayed both attractive valuation metrics and strong profitability metrics.
For example, the recent CSX share price of $28.29 represents a price-to-book ratio of 2.7 and an annual dividend yield of 2.3% — by comparison, the average dividend-paying stock in the Dow Transports yields 1.6% and trades at a price-to-book ratio of 4.3.
The report also cited the strong quarterly dividend history at CSX Corp., and favorable long-term multiyear growth rates in key fundamental data points.
The report also stated:
Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest most profitable companies that also happen to be trading at an attractive valuation. That’s what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most “interesting” stocks, meant for investors as a source of ideas that merit further research.
The Dow Jones Transportation Average, or ”Dow Transports” for short, actually predates the Dow Jones Industrial Average and is the most widely followed index covering the American transportation sector.
The current annualized dividend paid by CSX Corp. is 64 cents per share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of May 24.
Below is a long-term dividend history chart for CSX, which the report stressed as being of key importance. Indeed, studying a company’s past dividend history can be of good help in judging whether the most recent dividend is likely to continue.