To say that railroads have been on my mind a lot lately would be an understatement. Just like when I play monopoly, my strategy for success is to ride the rails! Perhaps I’m getting a little too carried away, but at these low valuations, it’s been very hard to resist.
So, I gave in again today and added 60 shares of CSX Corporation (CSX) at $20.70/share. CSX was my first railroad stock, which I started back in March at roughly the same purchase price. I am pleased to have been able to add more shares at this attractive price point again. CSX has increased its dividend at a growth rate of over 25% in the past 5 years.
I wasn’t done. I also added to my Norfolk Southern (NSC) position, purchasing 20 shares at $63.70/share. I initiated a position with NSC just last week at a pricepoint of $67.41/share. Even at that time, I thought I was getting a bargain.
NSC has continued to slide further down, so I used today as an opportunity to dollar cost average down. The last time NSC hovered around $63.50 was back in June. I had this stock on my watchlist at the time, and was waiting for it to dip just a bit more. It never did, and the next thing I knew, it shot up to over $70. I didn’t want to miss this chance again, so decided to load up instead.
Factoring in these two new purchases, I’ve now made six transactions (EXC, EXC, NSC, INTC, CSX, NSC) in the month of September. I made zero in August. But still, even after going on a shopping spree this month, I am still finding some attractive valuations in the market. CAT and CMI are two in particular that I will continue to watch with interest. Just a little bit further, and I’m sure I’ll strike again.