Norfolk Southern Co. Declares Quarterly Dividend of $1.35 (NYSE:NSC)

Norfolk Southern Co. (NYSE:NSC) announced a quarterly dividend on Tuesday, April 23rd, RTT News reports. Investors of record on Friday, May 3rd will be paid a dividend of 1.35 per share by the railroad operator on Monday, May 20th. This represents a $5.40 annualized dividend and a yield of 2.20%.

Norfolk Southern has increased its dividend by an average of 12.8% per year over the last three years and has raised its dividend every year for the last 3 years. Norfolk Southern has a payout ratio of 38.9% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Norfolk Southern to earn $13.58 per share next year, which means the company should continue to be able to cover its $5.40 annual dividend with an expected future payout ratio of 39.8%.

Norfolk Southern Stock Up 0.2 %

Shares of NYSE:NSC traded up $0.42 during trading hours on Tuesday, reaching $245.03. The stock had a trading volume of 1,115,030 shares, compared to its average volume of 1,265,385. The firm’s 50 day moving average is $252.77 and its 200-day moving average is $231.71. Norfolk Southern has a 1 year low of $183.09 and a 1 year high of $263.66. The company has a debt-to-equity ratio of 1.34, a quick ratio of 1.14 and a current ratio of 1.24. The stock has a market capitalization of $60.33 billion, a price-to-earnings ratio of 30.50, a P/E/G ratio of 3.28 and a beta of 1.30.

Norfolk Southern (NYSE:NSC) last issued its earnings results on Friday, January 26th. The railroad operator reported $2.83 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.87 by ($0.04). Norfolk Southern had a net margin of 15.03% and a return on equity of 21.06%. The company had revenue of $3.10 billion during the quarter, compared to analyst estimates of $3.09 billion. During the same quarter in the previous year, the company posted $3.42 EPS. The company’s quarterly revenue was down 4.2% on a year-over-year basis. Research analysts predict that Norfolk Southern will post 11.98 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

NSC has been the subject of a number of research analyst reports. Jefferies Financial Group initiated coverage on shares of Norfolk Southern in a report on Monday, April 8th. They issued a “buy” rating and a $300.00 price target for the company. Royal Bank of Canada reiterated a “sector perform” rating and issued a $270.00 price target on shares of Norfolk Southern in a report on Wednesday, April 10th. Benchmark raised their target price on shares of Norfolk Southern from $250.00 to $277.00 and gave the company a “buy” rating in a report on Wednesday, April 10th. Loop Capital raised their price target on shares of Norfolk Southern from $261.00 to $270.00 and gave the stock a “buy” rating in a research note on Thursday, April 18th. Finally, Susquehanna reduced their price target on shares of Norfolk Southern from $270.00 to $265.00 and set a “neutral” rating on the stock in a research report on Wednesday, April 10th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and thirteen have given a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $262.74.

About Norfolk Southern

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.