Norfolk Southern Corporation

NSC
Industrials
$316.34
1.71%Overvalued

Norfolk Southern Corporation (NSC) is a Industrials company that currently yields 1.71% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $210.79 and the overvaluation threshold at $322.38. Norfolk Southern Corporation holds a quality score of 47/100 (Average), reflecting 9 consecutive years of dividend growth with a 46% payout ratio. The 5-year dividend CAGR stands at 7.5%.

NSC Dividend Yield History — Weiss Valuation

Underval. $210.79Overval. $322.38

Distance to undervalued

Entry price is stretched

Needs 33.4% downside to reach the Weiss buy zone

Undervaluation starts near $210.79, where the annual dividend would imply roughly 2.56% yield. That is 0.85% above today's yield.

Buy-zone price

$210.79

Target yield

2.56%

Research checklist

What to clear before buying the yield

Updated Oct 7, 2026

Dividend durability

9Y

Verify the dividend record before treating yield as durable.

Earnings payout

46%

Earnings coverage leaves room for noise.

Cash payout

88%

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

2026-10-06 → 2026-10-07

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 46%.

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

$184

Year 10 Income

$439

Yield on Cost

4.55%

Total Income

$2,920

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

Track actual vs. projected

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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$316.34
Annual Dividend$5.40
Current Yield1.71%
Yield — Max (10Y)3.55%
Yield — Min (10Y)1.74%
Undervalued Below$210.79
Overvalued Above$322.38
Payout Ratio46.08%
CAGR Dividend 5Y7.5%
CAGR Dividend 10Y6.2%
Years No Cut9y

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9
consecutive years of dividend growth