Investors Look to Dow Transports for Growth and Dividends

With the media focused on Dow 17,000, we often overlook some promising investing opportunities in the Dow Transports. The Dow Jones Transportation Average was the first listing in 1884. It had nine railroad stocks in the index. The Dow Jones Industrial Average came later in 1896. Throughout the late 1800s and early 1900s, rail transportation dominated the way goods were shipped throughout the country. At one point in 1916, the US had 254,000 railroad lines. From then on railroads had to compete with trucks and air transportation and saw a loss of revenue and jobs. However, we are in the midst of a new revival of rail transportation with both ton miles shipped and net proceeds setting new records.

Commodities are leading the way with total carloads of 14,090,734 this year to date. The three biggest increases came in crushed stone, sand and gravel with 12,217 carloads, up 14.1%, grain 10,394 carloads, up 16.5% and petroleum and petroleum products 4,715 carloads up 8;6% (Association of American Railroads).

For investors rail stocks offer an opportunity for growth and dividends. Listed here are the leaders in the industry: (Barcharts.com)

Union Pacific Corp. (UNP) Recent price $100.26 52 week high/low is $102.96/$74.61 EPS is 4.88 PE ratio is 20.46 Dividend is $1.82 (1.82%) Market Cap is $91.06 Billion

Canadian Pacific Railway (CP) Recent price is $183.31 52 week high/low $186.90/$115.54 EPS is 6.24 PE ratiio is 29.07 Dividend $1.29 (.71%) Market Cap is $32.20 Billion.

Genesee and Wyoming (GWR) Recent price is $105.00 52 week high/low is $106.20/$83.16 EPS is 3.84 PE ratio is 27.72 Market Cap is $5.63 Billion

Canadian National Railway (CNI) Recent price $65.53 52 week high/low is $66.05/$46.71 EPS is 2.94 PE ratio is 22.34 Dividend is $.92 (1.40%) Market Cap is $54.17 Billion

Norfolk Southern Corp. (NSC) Recent price $103.23 52 week high/low is $104.63/$71.86 EPS is 5.80 PE ratio is 17.86 Dividend is $2.16 (2.09%) Market Cap is $34.05 Billion

CSX Corp (CSX) Recent price $31.01 52 week high/low is $31.22/$23.09 EPS is 1.80 PE ratio is 17.23 Dividend is $.64 (2.06%) Market Cap is 31.25 Billion

Kansas City Southern (KSU) $108.66 52 week high/low is $125.96/$88.56 EPS is 4.14 PE ratio is 26.08 Dividend is $1.12 (1.04%) Market Cap is $11.99 Billion.

Providence and Worcester (PWX) Recent price is $17.90 52 week high/low is $18.11/$17.57 Dividend is $.16 (.86%) Market Cap is $86.82 million.

The Dow Jones Transportation Average also includes trucking companies and airlines. Here are three stocks from this group:

Delta Airlines (DAL) Recent price is $36.90 52 week high/low is $42.60/$18.45 EPS is 2.27 PE ratio is 11.35 Dividend is $.14 (.63%) Market Cap is $31.34 Billion.

FedEx (FDX) $151.68 52 week high/low is $153.74/$98.64 EPS 6.79 PE ratio is 22.43 Dividend is $.80 (.53%) Market Cap is $44.82 Billion.

United Parcel Service (UPS) Recent Price is $103.24 52 week high/low is $105.37/$85.18 EPS Is 4.52 PE ratio is 22.91 Dividend is $2.68 (2.59%) Market Cap is $94.77 Billion

For investors who prefer an ETF the one that tracks the transportation average is symbol (IYT) Price is $147.14

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