February 18, 2026 a 03:31 pm
CSX: Dividend Analysis - CSX Corporation
CSX Corporation has demonstrated a compelling dividend profile, underpinned by a robust dividend history of 45 years. Despite fluctuating economic conditions, its dividend yield and growth metrics indicate a stable dividend policy. Its payout ratios reflect a sustainable policy, balancing shareholder returns with financial health. CSX's diverse operational strategies continue to fortify its dividend-distributing capabilities.
📊 Overview
CSX Corporation, a pivotal entity in the transportation sector, shows strong dividend credentials. The data below highlights its current financial metrics relevant to dividend assessments:
| Metric | Value |
|---|---|
| Sector | Transport |
| Dividend yield | 1.47 % |
| Current dividend per share | 0.52 USD |
| Dividend history | 45 years |
| Last cut or suspension | 2002 |
🗣️ Dividend History
CSX Corporation's dividend history is a testament to their resilient growth and consistent shareholder returns over decades. A strong dividend history often represents a reliable income for investors and stability in corporate earnings.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.52 |
| 2024 | 0.48 |
| 2023 | 0.44 |
| 2022 | 0.40 |
| 2021 | 0.37 |
📈 Dividend Growth
The company's dividend growth over the past years is key to enhancing shareholder value. A consistent uptrend in dividend growth underlines the management's confidence in future cash flows.
| Time | Growth |
|---|---|
| 3 years | 9.14 % |
| 5 years | 8.45 % |
The average dividend growth is 8.45 % over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
Payout ratios provide insight into how well a company can sustain dividend payouts. An optimal ratio supports sustainable dividends without endangering financial stability.
| Key figure | Ratio |
|---|---|
| EPS-based | 33.64 % |
| Free cash flow-based | 24.64 % |
The EPS-based payout ratio at 33.64 % and the FCF-based ratio at 24.64 % indicate that CSX maintains an excellent balance between rewarding shareholders and retaining earnings for reinvestment.
📊 Cashflow & Capital Efficiency
Strong cash flow and capital efficiency are critical for sustaining dividends and supporting growth.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 4.68 % | 4.35 % | 2.53 % |
| Earnings Yield | 5.27 % | 5.55 % | 4.28 % |
| CAPEX to Operating Cash Flow | 40.93 % | 48.20 % | 62.91 % |
| Stock-based Compensation to Revenue | 0 % | 0.27 % | 0 % |
| Free Cash Flow / Operating Cash Flow Ratio | 59.07 % | 51.80 % | 37.09 % |
CSX shows solid cash flow stability, ensuring efficient capital allocation and robust returns on invested capital, keeping the firm poised for future opportunities.
📉 Balance Sheet & Leverage Analysis
A sturdy balance sheet with manageable leverage is crucial for financial stability and strategic flexibility.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 1.59 | 1.52 | 1.43 |
| Debt-to-Assets | 0.45 | 0.44 | 0.43 |
| Debt-to-Capital | 0.61 | 0.60 | 0.59 |
| Net Debt to EBITDA | 2.43 | 2.55 | 3.10 |
| Current Ratio | 0.91 | 0.73 | 0.21 |
| Quick Ratio | 0.91 | 0.73 | 0.21 |
| Financial Leverage | 3.52 | 3.42 | 3.32 |
CSX's leverage management allows for adequate financial flexibility, ensuring a resilient position against economic headwinds.
📊 Fundamental Strength & Profitability
Core profitability and operational effectiveness are key indicators of a company’s long-term viability and ability to enhance shareholder wealth.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 30.62 % | 27.76 % | 21.95 % |
| Return on Assets | 8.69 % | 8.11 % | 6.61 % |
| Net Margin | 25.03 % | 23.87 % | 20.50 % |
| EBIT Margin | 38.47 % | 37.04 % | 32.57 % |
| EBITDA Margin | 49.63 % | 48.65 % | 41.63 % |
| Gross Margin | 38.23 % | 37.87 % | 33.25 % |
| R&D to Revenue | 0 % | 0 % | 0 % |
CSX exhibits robust profitability metrics signifying efficient operations and strong market positioning, enhancing its ability to reinvest and reward shareholders.
📊 Price Development
✅ Dividend Scoring System
| Criteria | Score | Rating |
|---|---|---|
| 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's dividend profile is robust, characterized by high dividend stability and sustainable growth rates. With a solid financial footing and a commendable payout strategy, CSX presents a reliable dividend investment. The investment case is further bolstered by its prudent financial management and strategic market presence, making it a formidable choice for dividend-focused portfolios.