June 27, 2025 a 07:31 am
CSX: Dividend Analysis - CSX Corporation
CSX Corporation exhibits a stable and promising dividend profile with a long history of 45 years without any cuts or suspensions. The company maintains a current dividend yield of 1.58%, making it a reliable choice for income-focused investors. Despite a moderate payout ratio, the consistent dividend growth suggests robust financial health and commitment to returning value to shareholders.
📊 Overview
CSX Corporation, part of the transportation sector, offers a steady dividend yield of 1.58%. The current dividend per share is 0.48 USD, with a 45-year history of consistent dividend payments, reinforcing the firm's reliability.
| Criteria | Details |
|---|---|
| Sector | Transportation |
| Dividend Yield | 1.58 % |
| Current Dividend per Share | 0.48 USD |
| Dividend History | 45 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
CSX Corporation boasts a lasting dividend payment history over 45 years, a testament to its enduring operational success and shareholder commitment.
| Year | Dividend per Share |
|---|---|
| 2025 | 0.26 USD |
| 2024 | 0.48 USD |
| 2023 | 0.44 USD |
| 2022 | 0.40 USD |
| 2021 | 0.37 USD |
📈 Dividend Growth
The dividend growth over the past three and five years highlights CSX's focus on incrementally increasing shareholder value, denoting healthy corporate financial growth trajectories.
| 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
Analyzing payout ratios reveals the company's disciplined approach towards managing earnings and free cash flow, ensuring sustainable distributions without compromising growth opportunities.
| Key Figure Ratio | Value |
|---|---|
| EPS-based | 28.06 % |
| Free cash flow-based | 33.50 % |
The payout ratios, with 28.06% from EPS and 33.50% from FCF, indicate a conservative dividend policy, providing flexibility for future growth and financial resilience.
🔍 Cashflow & Capital Efficiency
Strong cash flow generation and capital efficiency underscore CSX's ability to sustain dividends while investing profitably in its growth strategies.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.35 % | 4.69 % | 5.27 % |
| Earnings Yield | 5.55 % | 5.34 % | 6.30 % |
| CAPEX to Operating Cash Flow | - | 41.11 % | 37.96 % |
| Stock-based Compensation to Revenue | - | - | 0.50 % |
| Free Cash Flow/Operating Cash Flow Ratio | 51.80 % | 58.89 % | 62.04 % |
The stability of cash flows and prudent capital allocation indicate strong operational management, ensuring shareholder returns through market cycles.
📉 Balance Sheet & Leverage Analysis
CSX's balance sheet reveals disciplined leverage and robust liquidity positions, helping it withstand economic pressures while maintaining growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.52 | 1.57 | 1.43 |
| Debt-to-Assets | 0.44 | 0.45 | 0.43 |
| Debt-to-Capital | 0.60 | 0.61 | 0.59 |
| Net Debt to EBITDA | 2.55 | 2.42 | 2.18 |
| Current Ratio | 0.88 | 1.05 | 1.56 |
| Quick Ratio | 0.73 | 0.91 | 1.42 |
| Financial Leverage | 3.42 | 3.50 | 3.32 |
The financial metrics reveal a stable debt structure and adequate liquidity, supporting CSX's strategic growth and dividend distribution capabilities.
✅ Fundamental Strength & Profitability
Analyzing profitability metrics highlights CSX's operational efficiency and the strength of its financial footing.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 27.76 % | 30.63 % | 33.00 % |
| Return on Assets | 8.11 % | 8.76 % | 9.94 % |
| Margins: Net | 23.87 % | 25.35 % | 28.05 % |
| EBIT Margin | 37.05 % | 38.89 % | 39.65 % |
| EBITDA Margin | 48.65 % | 50.08 % | 49.75 % |
| Gross Margin | 36.74 % | 37.71 % | 38.95 % |
| Research & Development to Revenue | - | - | - |
CSX displays impressive profitability and operational efficiency with substantial returns on equity and assets, amplifying investor confidence.
📊 Price Development
🔎 Dividend Scoring System
An assessment utilizing a proprietary scoring method, evaluating key dividend and financial stability criteria of CSX Corporation.
| Criterion | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4/5 | |
| Dividend Stability | 5/5 | |
| Dividend Growth | 3/5 | |
| Payout Ratio | 4/5 | |
| Financial Stability | 4/5 | |
| Dividend Continuity | 5/5 | |
| Cashflow Coverage | 4/5 | |
| Balance Sheet Quality | 4/5 |
Overall Score: 33/40
⭐ Rating
CSX Corporation maintains a solid dividend reliability and growth potential driven by strong financials and disciplined management. It poses a lucrative investment opportunity for dividend-oriented portfolios, recommended for investors seeking stable income with moderate growth prospects.