The board of directors of CSX Company CSX has approved a three-for-one common stock split in the form of a stock dividend. According to the Jacksonville, Florida-based rail operator, each registered shareholder at the close of trading on June 18, 2021 will get two additional common shares of CSX for each share held on that registration date. The new shares will be distributed to the shareholders of the company on June 28.

Management further stated that the regular quarterly dividend of 28 cents per share, which is payable on June 15, will not be affected by this stock split. Based on the current dividend rate, the quarterly (post-split) dividend on the company’s common stock will be 9.3 cents per share.

Notably, the company’s shares have gained 276.2% over the past five years, sharply outperforming the industry’s 169.7% growth over five years.

5-year price performance

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Notably, the motive for the stock split is to make the shares of the company more affordable, as the number of authorized common shares will increase. This, in turn, will likely boost demand for CSX shares, as investor confidence in the shares will be boosted.

Zacks rank and choice of keys

CSX currently carries a Zacks Rank # 3 (Hold). Some higher ranked stocks in the broader transport sector are Covenant Logistics Group CVLG, CH Robinson in the world CHRW and United parcel service UPS. While Covenant Logistics and CH Robinson sport a Zacks Rank # 1 (strong buy), UPS currently carries a Zacks Rank # 2 (buy). You can see The full list of today’s Zacks # 1 Rank stocks here.

Shares of Covenant Logistics, CH Robinson and UPS rose more than 66%, 15% and 98% in one year, respectively.

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Each has been selected by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2020. Each comes from a different industry and has unique qualities and catalysts that could fuel exceptional growth.

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CSX Corporation (CSX): Free share analysis report

United Parcel Service, Inc. (UPS): Free Stock Analysis Report

CH Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report

Covenant Logistics Group, Inc. (CVLG): Free Inventory Analysis Report

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