14 Best American Dividend Stocks to Invest In

11. CSX Corporation (NASDAQ:CSX)

Number of Hedge Fund Holders: 70

On March 4, Bank of America raised the firm’s price recommendation on CSX Corporation (NASDAQ:CSX) to $48 from $41. It reiterated a Buy rating on the shares. The firm said it is updating price targets across transportation and railroad stocks under its coverage. Operating performance across the sector remains solid, and the analyst sees several indicators that suggest a possible inflection in the industrial economy.

During the company’s Q4 2025 earnings call, CEO Stephen Angel said the company expects low single-digit revenue growth this year. The outlook assumes flat industrial production, modest GDP growth, and fuel and benchmark coal prices staying close to current levels. Angel also said operating margins could expand by about 200 to 300 basis points in 2026.

He explained that the expected improvement would come from workforce optimization efforts, tighter cost control, and gains in network efficiency. The company also plans to keep capital expenditures below $2.4B in 2026. Angel described that level as a meaningful drop from the previous year. Most of the spending will go toward safety, reliability, and a limited number of growth projects. He also noted that free cash flow could increase by at least 50% compared with 2025. Angel said the company is moving away from multiyear targets and will provide guidance only for 2026. He explained that the decision reflects shifting macroeconomic conditions and changes across the industry.

CSX Corporation (NASDAQ:CSX) provides rail, intermodal, and rail-to-truck transload services. Its network supports customers in several industries, including energy, industrial, construction, agriculture, and consumer products.