Shares of Norfolk Southern Corporation (NSC) will begin trading ex-dividend on Wednesday, May 3. To qualify for a dividend check, investors must have owned Norfolk Southern shares prior to Wednesday, which is the last day the company’s management will finalize its roster of shareholders to whom it will mail payments.
Norfolk Southern stock, which currently trades around $117 per share, has risen about 8.72% year to date, including some 2.38% declines in the past three months. This compares with a 6.64% year-to-date rise in the S&P 500 index (SPX). Norfolk Southern stock has risen 27.73% over the past twelve months, while the S&P 500 has risen 14.15%. (See also: Norfolk Southern (NSC) Beats on Q1 Earnings, Revenues)
In its fiscal first-quarter earnings results, reported in April, the Norfolk, VA-based company beat Wall Street estimates on earnings per share and beat on revenue. The company reported adjusted earnings of $1.48 per share, which beat analysts’ projections by 12 cents. First-quarter revenue of $2.58 billion grew 6.6% year over year, beating Wall Street estimates by $30 million.
Looking ahead, for the fiscal second quarter ending June, Norfolk Southern is expected to deliver $1.64 per share, up from $1.36 a year ago, on revenue of $2.64 billion, up 7.6% year over year. For the full year, ending December, earnings are projected to rise 12.4% year over year to $6.32 per share, while revenue of $10.46 billion would mark a 5.8% rise year over year.
Based on Norfolk Southern’s current stock price of around $117, the company’s 61-cent per share quarterly dividend yields 2.08% annually, or about 8 basis points above the 2.00% average yield of the S&P 500 index. Norfolk Southern will send its dividend payment on June 10 to shareholders of record as of May 5. The stock has a consensus Hold rating and an average analyst 12-month price target of $122.50, implying potential returns of 4.26% from current levels.