Tuesday, April 10, 2012

New Purchase - NSC

This afternoon I added to my position of Norfolk Southern (NSC).  I bought 19 additional shares at $64.96 plus commissions which will provide $35.72 annual income.  Norfolk Southern has hit a rough patch the past few months with concerns over coal transportation revenues.  I look at this as an opportunity to buy a company I like at cheaper prices.  It should go ex in less than a month so I figured now would be a good time to get in.

It has been exciting to see the market decline the past week or two.  It's refreshing to check my watch list and find many companies trading at reasonable prices.  At this point in time I'm also looking at OMI, BNS, and APD.  I'd love to add to CVX if it continues to decline.  I would also note that UNS is attractive right now for those looking at utilities.


  1. Nice purchase. I am tempted to increase my NSC position but it is already quite large, so I am focusing on either adding to smaller positions in my portfolio (e.g., GD or VOD) or starting new positions. If this market decline continues I will likely buy something before the end of the week.

    1. I agree with Deedubs, nice purchase. I also agree that I would be buying if not for the allocation I already have to NSC. I think it's a solid long-term buy right now. I'm with you on adding to CVX if it drops much further, perhaps to $97 or so. UNS is also attractive.

      I recently purchased SBSI and RTN. After reading about SBSI on this blog I took a look at it. It looks pretty attractive and it's very cheap along with a fairly high yield. It's risky being a bank, and a small one at that. But, I feel okay with it.

      Best wishes!

    2. Wow you bought SBSI? In my opinion it is less risky than large US banks. Did Southside cut its dividend in 2008/2009/2010? Nope! It grew divs greater than 10% in each of those years and paid special dividends on top it too. I consider banks such as JPM, WFC, USB to be the more speculative and risky plays, at least from the dividend growth perspective.

      I am very interested in large cap Canadian banks such as BNS and TD. Yea the Canadian powerhouses froze dividends for a year, but no cuts! I can live with a freeze, especially during a crisis. I won't touch any large American banks with a 10ft pole. That's just me though.

    3. There was a good overview of Canadian banks and their dividend histories in a recent Seeking Alpha article by Jeff Williams:


    4. Hey thanks for the link, it gives me something to think about. TD seems to be the best fit for my strategy. I like BNS for their international presence, but the dividend cuts in 2005 & 2006 make me wonder if it will happen again in the future.