Dividends and Investors focus on rail earnings to assess effect of trade wars

President Trump loves tariffs but trade wars have consequences to the economy. Sometimes it is not good, sometimes it is not, and sometimes it has unintended consequences.

In an article from Reuters, it was noted a easy method to judge the strength of the economy is examining freight companies.

Union Pacific operates 32,000 rail network including the Los Angeles/Long Beach port where the majority of trade between China and the US cargo flows.

Kansas City Southern Railway crosses into Mexico, this cross border traffic contributes a large share of its revenue.

Approximately 70% of US shipment tonnage is through trucking companies. The largest trucking company is JB Hunt Transport.

Packages delivery companies include FedEx and UPS, will increasing globalization the companies have spent upgrading their international abilities, trade pressures will cause increase under use of these resources.

Linking to dividend paying stocks, often examining how well the supply system works will tell you how the company is doing. Although operations are the least srxy part of the company, every company is dependent on the smooth operation for steady income.

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







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