To gauge the overall economy, the easiest way is to examine railway stocks. Railways move goods over a long distance at a relatively inexpensive price. The companies were built to move grains from the farms in the plains to the markets in Chicago and beyond; consumer goods to everyone – think of containers and Wal-mart; all the big coal electric plants need coal; you car needs oil – where the companies have made extra money, until the pipelines get built. The railways move things those of us in the city need.

Norfolk Southern has been on a roll since Feb 2016 when its price was $70 and now it has touch $110 and was highlighted in an article by Gordon Pape. The company perates 20,000 route miles in 20 states serving every major container port in the eastern US and is a major transporter of coal, automobile and industrial parts.

The railway has been doing many things right including earning more money  $1.25 billion ($4.21 a share) compared with $1.2 billion ($3.90 per share) in 2015. The reason for the increase per share is the average number of shares has decreased as the company has purchased 7.2 million shares. Since 2006 the company has bought back 158.3 million shares.

In terms of operations, the operating ratio is 67.5% and the achieved $250 in productivity savings. The stock pays $2.36 dividend a year to yield 2.1%.

Linking to dividend paying stocks, Norfolk Southern has paid a dividend for 134 quarters or over 33 years and over the years the company’s share price has moved from $50 in 2009 to $70 in Feb 2016 to $110 now. It just shows dividend paying companies can both have price increases and decreases; but if you buy a good company and as your expectation for the future improves there are opportunities to be made. One of the reasons the price has moved is the expectation of a growing US economy particularly on the east coast. As the economy improves, so does the strength of the railways.

There are more questions than answers, till the next time – to raising questions.