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In light of low bond yields and the threat of interest rate risk, investing in dividends companies is attractive because of higher present yields and the opportunity for dividend growth. Income investors searching for growing dividends could benefit by adding railroad and shipping companies to their portfolios.

The following dividend paying stocks were screened for their long term performance. Each of the following companies pays a dividend in excess of the 10-year Treasury yield and had over a 5% average annual increase in dividend payments over the past 10 years. Thus, each of these dividend stocks pays more than Treasuries and has a long-term trend of dividend growth, which is better than the static interest payments on fixed-rate Treasuries.

Price multiples, dividend histories, and return of equity hisoties are provided below:

CSX Corp. (NYSE:CSX) recently traded at $22.94 per share. At this price level, the stock has a 2.0% dividend yield. For 10 out of the past 10 fiscal years, a share of CSX paid a total of $1.58 in dividends. Of these dividend payments, a total of $1.17 were paid in the last five years.

CSX shareholders have enjoyed a 12.4% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 3.0, a price-to-earnings multiple of 14.6, and a price-to-sales multiple of 2.1 (trailing twelve months). Over the past decade shareholders savored a 11.3% average annual return on equity.

Norfolk Southern Corp. (NYSE:NSC) recently traded at $76.50 per share. At this price level, the stock has a 2.2% dividend yield. For 10 out of the past 10 fiscal years, a share of NSC paid a total of $7.26 in dividends. Of these dividend payments, a total of $5.62 were paid in the last five years.

NSC shareholders have seen a 7.4% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 2.6, a price-to-earnings multiple of 15.3, and a price-to-sales multiple of 2.4 (trailing twelve months). Over the past decade shareholders savored a 12.1% average annual return on equity.

Overseas Shipholding Group Inc. (OSG) recently traded at $13.12 per share. At this price level, the stock has a 6.6% dividend yield. For 10 out of the past 10 fiscal years, a share of OSG paid a total of $10.31 in dividends.

OSG shareholders have savored a 21.0% change in share price over the past year. At present, shares of this small cap stock trade at a price-to-book ratio of 0.3, and a price-to-sales multiple of 0.4 (trailing twelve months). A price-to-earnings ratio could not be computed based on a net loss over the past twelve months. Over the past decade shareholders savored a 12.5% average annual return on equity.

Union Pacific Corporation (NYSE:UNP) recently traded at $109.73 per share. At this price level, the stock has a 2.2% dividend yield. For 10 out of the past 10 fiscal years, a share of UNP paid a total of $7.24 in dividends. Of these dividend payments, a total of $4.72 were paid in the last five years.

UNP shareholders have seen a 4.8% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 2.9, a price-to-earnings multiple of 17.6, and a price-to-sales multiple of 2.8 (trailing twelve months). Over the past decade shareholders savored a 11.6% average annual return on equity.

United Parcel Service, Inc. (NYSE:UPS) recently traded at $74.16 per share. At this price level, the stock has a 2.8% dividend yield. For 10 out of the past 10 fiscal years, a share of UPS paid a total of $13.56 in dividends.

UPS shareholders have seen a 2.1% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 9.3, a price-to-earnings multiple of 18.1, and a price-to-sales multiple of 1.4 (trailing twelve months). Over the past decade shareholders savored a 24.9% average annual return on equity.

With the exception of OSG, most of these stocks appear rich at current prices. Investors ought to wait before taking the show on the road with shipping and railroad shares.

Source: Railroad, Shipping Dividends Full Speed Ahead