CSX dividend
MyStockButler's October 2026 analysis: CSX pays $0.14 quarterly, or $0.56 annually in the forecast. Its dividend is funded alongside buybacks, and payouts exceeded free cash flow during 2021–2025.
How much does CSX pay per share?
Dividends begin at $0.56 annually in every case, reflecting the declared $0.14 quarterly payment. The base path reaches $0.64 through moderate increases, below the latest 8% increase because capital spending remains substantial. The bear case stays at $0.56, while the bull case reaches $0.72 as cash generation strengthens. Dividends have risen each year shown, but payouts and buybacks exceeded free cash flow during 2021–2025.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 1.54 | 1.79 | 1.82 | 1.92 | 1.68 |
| − Dividends paid, per share | 0.52 | 0.48 | 0.44 | 0.40 | 0.37 |
| − Share buybacks, per share | 0.73 | 1.13 | 1.73 | 2.21 | 1.28 |
What this means. The company's own free cash flow per share is higher than our real free cash flow per share because our count subtracts shares given to employees as pay, while the company's count follows its own rules.
How much would CSX's dividend pay you?
$10,000 invested in CSX at its 1.2% dividend yield (our report of October 22, 2026) pays $120.00 in the first year, before tax. If its dividend per share keeps changing 8.9% a year, as it did from 2021 to 2025, and the dividends are reinvested, year 10 pays $301.06, with $1,966.93 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is CSX's dividend covered by its cash?
From 2021 through 2025, free cash flow totalled $14,407 million. Shareholder payments totalled $19,154 million, exceeding it by $4,747 million. Dividends were comparatively steady, while buybacks—the purchase and retirement of shares—provided the adjustable outlet for excess cash.
In 2025, CSX generated $4,613 million from operations and spent $2,902 million on property, leaving $1,711 million of free cash flow. Deducting $54 million of stock compensation gives an analytical “real free cash flow” figure of $1,657 million. Stock pay is not a current cash bill, but it gives employees an economic claim that shareholders ultimately bear.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,711 | 2,718 | 3,257 | 3,413 | 3,308 |
| − Dividends paid | 972 | 930 | 882 | 852 | 839 |
| − Share buybacks | 1,376 | 2,204 | 3,482 | 4,731 | 2,886 |
| − Acquisitions | 16 | 70 | 31 | 227 | 541 |
| − Investments bought | 0 | 66 | 104 | 59 | 75 |
| − Debt repaid | 613 | 558 | 153 | 186 | 426 |
What could change CSX's dividend?
From 2028 onward, the key evidence will be cash after network investment. Stronger cash would permit larger buybacks and faster debt reduction. If payouts again exceed free cash flow, the base case would lose support.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| EBITDA | 7,700 (7,100 / 8,000) | 8,000 (6,900 / 8,800) | 8,300 (6,700 / 9,500) |
| Shares (millions) | 1,817 (1,830 / 1,810) | 1,791 (1,810 / 1,775) | 1,767 (1,791 / 1,742) |
| Dividends per share | 0.56 (0.56 / 0.56) | 0.60 (0.56 / 0.64) | 0.64 (0.56 / 0.72) |
| Enterprise value to ebitda | 15.00 (13.50 / 16.00) | 15.00 (13.00 / 17.00) | 15.00 (12.50 / 18.00) |
| Net debt | 15,480 (15,270 / 14,740) | 13,560 (13,660 / 11,870) | 11,490 (12,300 / 8,640) |
What this means. The enterprise value divided by earnings before interest, taxes, depreciation, and amortization is an assumed valuation measure, not a percentage return or interest rate.
What is CSX's dividend yield at today's price?
The current free cash flow yield is 1.9%, compared with a 5.13% yield on a ten-year U.S. government bond. That makes the railroad’s future growth especially important. Track, bridges and equipment must remain reliable, so postponing necessary work can make cash flow look better today while creating a larger bill tomorrow.