When I want to initiate a position in a company I like to split it up into a few purchases every 3 or 6 months to average the price in over time. This is my second purchase of Norfolk Southern Corp. (NSC). I purchased 16 shares at 65.36 this morning so my average cost is 67.22.
I wanted to add to my position for a few reasons:
I wanted to further increase my exposure to Transportation
They are a 22B market cap company with a dividend of 2.9%.
They have a 5-year CAGR of 19.08%
They have increased dividends yearly for 10 straight years. They actually have been increasing dividends about every 6 months.
I believe the loss of revenues from coal are already priced in and this provides for an attractive entry point.
Their earnings estimates for 2012-2015 are 5.81, 6.53, 7.26, 8.06 according to E-Trade.
Railroads provide the cheapest forms of transportation for many goods and this isn’t expected to change.