Tuesday, September 25, 2012

Recent Buy

This afternoon I purchased 20 shares of Norfolk Southern Corporation (NSC) for $65.14 per share for my Roth IRA. My total cost basis after commission is $1310.75 or $65.54 per share. NSC has increased their dividend twice this year which is a good sign for management's commitment to rewarding shareholders and belief in the underlying business. Railroads are local monopolies and I feel that NSC's business will pick back up. These shares have a 3.05% YOC and will provide an extra $40 per year in dividends before reinvestment or further increases.

8 comments:

  1. Nice, I made a purchase of NSC this afternoon as well. You got it slightly cheaper than I did.

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    1. Great! I think this is a great entry point and if it dips further I'll add more. So many other bloggers have been picking up shares. It's nice to have a little confirmation that other investors are seeing the same value as yourself. Now as long as the dividend increases keep coming it'll be even better.

      Thanksgiving for stopping by!

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  2. PIP,

    Great to see you aboard the NSC train. Transports have taken a stiff one to the chin and now is the time for long-term oriented value investors to increase holdings. NSC is one of the finest choices in this area, in my opinion.

    Best wishes!

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    1. I agree I wish I had more patience when I get cash in my brokerage account. Luckily that's my only real splurges. Once that money hits I get anxious to put it to work. As long as the dividend increases keep coming I'll ride this train for a long time.

      Thanksgiving for stopping by!

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  3. Good purchase. It's nice to see another dividend growth investor aboard the NSC train. Maybe we can get a group rate from the company! :)

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    1. Maybe we can get them to ship our dividend checks to us. I liked your recent purchase of Intel, I might look to add more via puts but it makes up a good chunk of my portfolio right now so its tough for me to buy more right now.

      Thanks for stopping by!

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  4. Congrats on your purchase. I don't think you can go wrong with this company long-term.

    There were quite a few of us that picked up some NSC shares recently. If it keeps heading lower I may have to make another purchase.

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    1. I agree. Long term their gonna still be used bc its a cheap way to transport large amounts of goods. And I really like the fact that they're virtual monopolies in their areas. I'm trying to decide on my next entry point. It was funny seeing all the posts about NSC purchases so close together.

      Thanks for stopping by!

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