Norfolk Southern Corp. Is One Stock for the Next 100 Years
While tech names have stampeded ahead in the past few years,
the best-performing stocks have been some of America’s oldest: “Forever
Assets.”
Longtime readers have heard me use the term before. I coined
it to describe an elite group of dividend stocks that have rewarded their
shareholders not just for years or decades, but for generations.
You’ve probably heard of many of these companies: Coca-Cola
Co (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and Procter & Gamble Co
(NYSE:PG), to name a few. All these companies boast durable brand names and
wide economic moats. As a result of their outsized competitive advantages,
they’ve managed to consistently beat the broader market averages for years.
Their competitive advantages have also allowed these
businesses to survive some of the worst economic downturns in living
memory. Thousands of businesses have
shuttered since the turn of the century, but my collection of Forever Assets
have managed to prosper through wars, depressions, crashes, inflation, and
political turmoil.
And even during the current COVID-19 pandemic, most of these
companies have carried on with business without so much as a hiccup in dividend
payments to shareholders.
Case in point: Norfolk Southern Corp. (NYSE:NSC). Sure,
railroads might seem like a 19th-century investment, but this industrial giant
has a number of things going for it: a nearly irreplaceable asset, thick profit
margins, and near-monopoly control over customers. Those inherent advantages
have quietly made NSC stock one of the market’s best performers over the past
decade. And investors have good reason to expect this Forever Asset to keep
chugging along in the 21st century and beyond.
Let me explain. Continue reading …
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