Norfolk Southern

Norfolk Southern operates one of the major freight rail networks in the eastern United States, hauling coal, chemicals, intermodal containers, autos and agricultural goods across a system that connects ports, factories and distribution hubs. Railroads enjoy formidable barriers to entry, and Norfolk Southern's network holds a near-irreplaceable position in the regions it serves. The company has paid and raised its dividend for more than three decades, funding those increases from the heavy, steady cash flows characteristic of the rail industry. The yield is on the lower side, but the long, unbroken record of growth and the durability of the underlying network give the payout a strong, dependable profile well suited to long-term income investors.