April 26, 2025 a 03:31 pm
CSX: Dividend Analysis - CSX Corporation
CSX Corporation showcases a robust dividend profile with a historical yield that appeals to income-focused investors. Despite a modest yield, the company's commitment to consistent payouts over the past 45 years underscores its dedication to returning value to shareholders. The company exemplifies stability in its dividend policies, positioning itself as a reliable investment avenue.
📊 Overview
CSX Corporation operates within the industrial sector, demonstrating a cautious approach to dividend payments with a yield of 1.53%. The company's ability to maintain consistent dividends amid market fluctuations is reflective of its strategic management and market position.
| Factor | Details |
|---|---|
| Sector | Industrial |
| Dividend yield | 1.53 % |
| Current dividend per share | $0.48 USD |
| Dividend history | 45 years |
| Last cut or suspension | None |
🗣️ Dividend History
The dividend history of CSX Corporation demonstrates its long-term stability and its ability to provide shareholders with regular income. Reliable dividend payouts over decades indicate strong financial performance and strategic foresight, critical factors for investor confidence.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | $0.13 |
| 2024 | $0.48 |
| 2023 | $0.44 |
| 2022 | $0.40 |
| 2021 | $0.37 |
📈 Dividend Growth
CSX Corporation's dividend growth reflects moderate but consistent increases over time. A stable dividend growth demonstrates the company's commitment to incrementally adjusting payouts in line with earnings growth, ensuring sustainable income for investors.
| Time | Growth |
|---|---|
| 3 years | 8.74 % |
| 5 years | 8.45 % |
The average dividend growth is 8.45% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Evaluating payout ratios is vital as it indicates the proportion of earnings paid out as dividends. A lower payout ratio suggests the sustainability of dividends and a buffer for managing downturns.
| Key figure | Ratio |
|---|---|
| EPS-based | 28.06 % |
| Free cash flow-based | 33.50 % |
CSX Corporation maintains an EPS payout ratio of 28.06% and an FCF payout ratio of 33.50%, indicating prudent dividend policies that allow for financial maneuverability and reflect a conservative approach to capital allocation.
📊 Cashflow & Capital Efficiency
Analyzing the cash flow and capital efficiency metrics allows us to assess CSX's ability to generate cash from operations and manage its capital expenditure efficiently, critical for ensuring ongoing dividend payments and financial growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 8.88% | 4.69% | 5.27% |
| Earnings Yield | 5.55% | 5.34% | 6.30% |
| CAPEX to Operating Cash Flow | 50.28% | 41.11% | 37.96% |
| Stock-based Compensation to Revenue | 0% | 0% | 0.49% |
| Free Cash Flow / Operating Cash Flow Ratio | 100% | 58.89% | 62.04% |
CSX Corporation demonstrates sound cash flow stability and capital efficiency, indicating a solid foundation for maintaining its dividend policy and achieving capital returns.
📉 Balance Sheet & Leverage Analysis
A robust balance sheet underpins dividends' sustainability, with leverage ratios offering insight into fiscal prudence and risk management effectiveness.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.087 | 1.574 | 1.429 |
| Debt-to-Assets | 0.025 | 0.450 | 0.431 |
| Debt-to-Capital | 0.080 | 0.612 | 0.588 |
| Net Debt to EBITDA | 0.0226 | 2.417 | 2.177 |
| Current Ratio | 0.860 | 1.050 | 1.558 |
| Quick Ratio | 0.861 | 0.911 | 1.420 |
| Financial Leverage | 3.419 | 3.497 | 3.320 |
CSX Corporation's financial leverage and debt ratios reflect a strategically managed balance sheet that may underpin sustainable financial resilience and operational flexibility.
🗣️ Fundamental Strength & Profitability
Evaluating profitability and fundamental strengths reveals operational effectiveness and forecasts dividend sustainability and growth potential.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 27.74% | 30.63% | 33.00% |
| Return on Assets | 8.11% | 8.76% | 9.94% |
| Net Margin | 23.87% | 25.35% | 28.05% |
| EBIT Margin | 37.05% | 38.89% | 39.66% |
| EBITDA Margin | 48.45% | 50.08% | 49.75% |
| Gross Margin | 36.74% | 37.71% | 38.95% |
| Research & Development to Revenue | 0% | 0% | 0% |
CSX Corporation's profitability ratios highlight robust fundamental strengths, ensuring the company's continued ability to generate returns and distribute dividends effectively.
📈 Price Development
✅ Dividend Scoring System
| Criteria | Score | Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 33/40
🗣️ Rating
CSX Corporation holds a formidable position within its sector, armed with a reliable dividend policy that signals substantial economic vigor and fiscal foresight. Given its consistent growth and strong payout ratios, CSX is recommended as a sound investment for income-seeking investors mindful of market volatility but aiming for stable returns.