Norfolk Southern Corporation

NSC
Industrials
$314.53
1.72%Overvalued

Norfolk Southern Corporation (NSC) is a Industrials company that currently yields 1.72% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $204.84 and the overvaluation threshold at $315.95. Norfolk Southern Corporation holds a quality score of 47/100 (Average), reflecting 9 consecutive years of dividend growth with a 45% payout ratio. The 5-year dividend CAGR stands at 7.5%.

NSC Dividend Yield History — Weiss Valuation

Underval. $204.84Overval. $315.95

Distance to undervalued

Entry price is stretched

Needs 34.9% downside to reach the Weiss buy zone

Undervaluation starts near $204.84, where the annual dividend would imply roughly 2.64% yield. That is 0.92% above today's yield.

Buy-zone price

$204.84

Target yield

2.64%

Research checklist

What to clear before buying the yield

Updated May 25, 2026

Dividend durability

9Y

Verify the dividend record before treating yield as durable.

Earnings payout

45%

Earnings coverage leaves room for noise.

Cash payout

93%

Confirm cash conversion and one-off effects.

Dividend growth

7.5%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-05-232026-05-25

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Norfolk Southern Corporation is trading near its historical overvaluation band.

Current yield 1.7% vs historical max 3.6% (48% of maximum).

9 years of uninterrupted dividends.

Conservative payout ratio of 45%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 47/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

NSC Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$185

Year 10 Income

$442

Yield on Cost

4.58%

Total Income

$2,938

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

NSC Dividend Quality Score

Quality Score

47/ 100

Average

Payout Ratio20/25
Dividend Streak12/25
Growth (CAGR 5Y)15/20
Yield vs History0/15
FCF Coverage0/15

Key Metrics

Current Price$314.53
Annual Dividend$5.40
Current Yield1.72%
Yield — Max (10Y)3.57%
Yield — Min (10Y)1.80%
Undervalued Below$204.84
Overvalued Above$315.95
Payout Ratio45.49%
CAGR Dividend 5Y7.5%
CAGR Dividend 10Y6.2%
Years No Cut9y

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9
consecutive years of dividend growth