I have been looking into adding a railroad or two to my portfolio. Been doing research into this industry these past few weeks and all of the class 1 railroads that operate in the U.S. and Canada look like suitable investments. These companies have small monopolies and they are not going to have to deal with new companies entering the industry. The dividends these companies offer are also good and these railroads have great margins. $UNP looks like a great investment to keep growing over time, while the share price is high this company seems to continue to grow as the demand for goods increases. $CP I don't like as much because they move a lot of coal and seem to be bigger linked to agriculture commodities. $CNI has the best margin in the industry and this along with Union Pacific are the two I am looking the most at. $CSX has a good entry price to pick up more shares but seems to not have as good of management as the other tickers I have mentioned. $NSC does not really have my attention, probably due to the higher price I would pick UP over them. Then there is also BNSF but that is owned by Berkshire and Buffet so it is not directly a railstock.
I was wondering what everyone here thinks of the industry and what they all invest in. Personally, I think railroad stocks are a little overpriced right now and will be watching to get whatever one I pick at a more fair price. However, I am a long-term bull in the industry and think there is a good upside and a strong dividend. Open to any discussion and feedback. Thank you for reading.
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