August 07, 2025 a 07:31 am
CSX: Dividend Analysis - CSX Corporation
CSX Corporation exhibits a consistent dividend payout history with a strong yield relative to its sector peers. Its financial health, as displayed in its low payout ratio and sustained return metrics, provides a solid foundation for dividend continuity. However, shareholders should remain vigilant regarding industry-specific risks that could impact cash flow and profitability.
📊 Overview
CSX Corporation operates within the Transportation sector, demonstrating a robust history of 45 years of dividend payouts. The current dividend yield stands at 1.42% with a recent annual dividend per share of $0.48.
| Metric | Value |
|---|---|
| Sector | Transportation |
| Dividend Yield | 1.42% |
| Current Dividend Per Share | $0.48 |
| Dividend History | 45 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
CSX Corporation’s dividend history reflects stability and commitment over decades, an attractive trait for long-term investors. Reviewing historical dividend data can shed light on the company’s policy toward shareholder returns.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.39 |
| 2024 | 0.48 |
| 2023 | 0.44 |
| 2022 | 0.40 |
| 2021 | 0.37 |
📈 Dividend Growth
The dividend growth metrics highlight CSX Corporation’s steady increase in shareholder returns. Investors benefit from compounded growth over time.
| 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
A low payout ratio suggests CSX Corporation has ample room to maintain or increase dividends. The financial flexibility is evident from both EPS and Free Cash Flow perspectives.
| Key Figure | Ratio |
|---|---|
| EPS-based | 28.91% |
| Free cash flow-based | 44.64% |
The EPS Payout Ratio of 28.91% and the FCF Payout Ratio of 44.64% indicate prudent management of earnings distribution, allowing for future dividend capacity.
Cashflow & Capital Efficiency
Efficient cash flow management and capital allocation are pivotal to sustaining CSX Corporation’s dividend yield and supporting potential growth projects.
| 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 | 48.20% | 41.11% | 37.96% |
| Stock-based Compensation to Revenue | 0% | 0% | 0.50% |
| Free Cash Flow / Operating Cash Flow Ratio | 51.80% | 58.89% | 62.04% |
The consistent Free Cash Flow Yield and low CAPEX requirements suggest efficient capital deployment, enhancing shareholder returns through sustained dividends.
Balance Sheet & Leverage Analysis
A sound balance sheet with manageable leverage ratios underpins CSX Corporation’s ability to meet financial obligations while maintaining dividend payouts.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.52 | 1.57 | 1.43 |
| Debt-to-Assets | 44.40% | 45.02% | 43.06% |
| Debt-to-Capital | 60.30% | 61.15% | 58.84% |
| Net Debt to EBITDA | 2.55 | 2.42 | 2.18 |
| Current Ratio | 0.86 | 1.05 | 1.56 |
| Quick Ratio | 0.73 | 0.91 | 1.42 |
| Financial Leverage | 3.42 | 3.50 | 3.32 |
CSX’s increased leverage ratios are balanced by strong interest coverage and liquidity ratios, suggesting solid financial resilience.
Fundamental Strength & Profitability
CSX Corporation’s profitability margins and returns on equity and assets are indicative of its ability to generate income relative to its resources and operations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 27.76% | 30.63% | 33.00% |
| Return on Assets | 8.11% | 8.76% | 9.94% |
| Return on Invested Capital | 9.97% | 10.61% | 11.69% |
| Net Margin | 23.87% | 25.35% | 28.05% |
| EBIT Margin | 37.05% | 38.89% | 39.66% |
| EBITDA Margin | 48.65% | 50.08% | 49.75% |
| Gross Margin | 36.74% | 37.71% | 38.95% |
| Research & Development to Revenue | 0% | 0% | 0% |
The strong profitability metrics highlight CSX Corporation’s efficient operation and its capacity to deliver consistent shareholder value through dividends.
📈 Price Development
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 34/40
Rating
CSX Corporation maintains a strong dividend profile with high scores in stability and growth. The overall recommendation for CSX is positive, signifying a reliable investment for dividend-focused portfolios, provided industry-specific risks are managed.