As part of my commitment to keep my readers up to date on my portfolio, I write up short posts describing my transactions. Recently, I purchased 15 shares of Norfolk Southern (NSC).
These 15 shares of NSC have a total cost basis of $1037.49, which works out to $69.17 per share. This is a little higher than I wanted to pay for NSC, but respectable given the recent market run up. NSC’s current forward dividend rate is $2.00 per share. So this amounts to a 2.89% starting yield. This purchase will increase my dividend stream by $30 per year. This is a little bit lower yield than I would prefer to start with, but I feel that NSC’s strong dividend growth will make up for it. This purchase will also increase my exposure to the industrials sector, which is a weak point in my diversification.
Norfolk Southern is a railroad service operating in the Eastern US and in parts of Canada. They are heavily involved in the transport of coal, general merchandise, chemicals and automobiles. See my recent analysis of NSC for more detail.
Disclosure: I have an outstanding cash-secured put against NSC. I am also now long NSC.
Readers: What do you think of this purchase?