My Financial Independence Journey » Investment portfolio » Recent Buy – Norfolk Southern (NSC)

Recent Buy – Norfolk Southern (NSC)

February 12th, 2013 | 7 Comments

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

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?

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Written by myfijourney

Filed under: Investment portfolio · Tags: buy, norfolk southern, NSC

7 Responses to "Recent Buy – Norfolk Southern (NSC)"

1. All About Interest says:

   February 12, 2013 at 3:13 pm

   Nice buy! I really like NSC as a long-term holding. They have had great dividend growth as you mention. I was fortunate to add to my shares on weakness near the beginning of the year. I also added some CSX to compliment it. However, I am fully vested in NSC and don’t plan to purchased additional shares until the rest of my portfolio catches up.

   Reply
   1. My Financial Independence Journey says:

      February 12, 2013 at 7:47 pm

      I missed the beginning of the year dip, but I’m pretty confident that this will turn out to be a good long term investment.

      Reply
2. Laurie says:

   February 13, 2013 at 7:24 am

   Sounds like it was a good purchase to me. More passive income, and a solid performance history….

   Reply
3. Dividend Mantra says:

   February 13, 2013 at 8:37 pm

   Journey,

   Great buy here. It’s a solid railroad operator, and I’d like to compliment my position in this company with a position in CSX and UNP at some point in time. When I think of “high barriers to entry”, railroads are one of the first companies that come to mind.

   Best wishes!

   Reply
   1. My Financial Independence Journey says:

      February 13, 2013 at 8:41 pm

      Mantra,

      I would have liked to have gotten NSC a little cheaper, like how low it was when I sold the put. But that crazy market just kept going up as soon as I sold the put. I think NSC is going to be a good buy for the long run.

      I need to look into CSX and UNP. I need some more industrials in my portfolio.

      Reply
4. The Stoic Investor says:

   February 14, 2013 at 10:24 pm

   I like it. Of course I bought some NSC back in Nov. so it would be hard not to like right?

   I’ve been happy with the run up lately…

   Reply
5. Korwil says:

   March 20, 2013 at 10:24 am

   A little expensive but it could end up paying you back pretty well. I like this purchase!

   Reply