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Norfolk Southern Dividend Payout Ratio Is Higher Than 5-Year Average

NSC

Norfolk Southern Corp. (NYSE: NSC) revealed that its board has declared the regular quarterly dividend of $0.59 a share on its common stock. On an annualized basis, the dividend represented $2.36. The company pays about 44 percent of its profit as dividend, which was higher than the five-year average payout ratio of 37.0 percent.

The company said that it would pay the dividend on September 10 to its shareholders, whose names appear on the record book of the company as on August 8.

Related Link: Freight Stock Catalysts For The Week, Courtesy Of Morgan Stanley

Norfolk Southern claimed that it has been paying dividends on its common stock for 136 straight quarters. That meant that the five-year average dividend growth rate was 9.34 percent while the growth rate for the three-year period was 5.72 percent.

The dividend also offered 2.6 percent yield, which was ahead of the 2.50 percent yield in the five-year period.

Shares of the company edged down by $0.10 or 0.11 percent at $89.92 on Friday.

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