Kansas City Southern (KSU), Union Pacific Corporation (UNP) & Should You Hop Onto These Stocks?

The company has been improving its infrastructure in a plan to increase its intermodal shipments. This is a popular and growing area of freight. Investors should see this plan of internal expansion as a positive sign.

The company also raised its dividend. The annual dividend carries a yield of 2.5% at $0.60 per share. It is also planning to buyback $1 billion worth of shares – another positive sign for investors.

The main factors affecting these companies

Each of these companies is faced with the same challenges of declining coal and agricultural shipments. So, they all must make up for the decline through other areas.

Two main areas fueling the growth of these stocks are automobile and intermodal transportation. As these continue to grow, so will the stocks. Each of these companies are great to hold for now. Continue to monitor the net income growth of each of these companies and the ways in which they earn it.

The article Should You Hop Onto These Stocks? originally appeared on Fool.com and is written by Austin Higgins.

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