Railroad company CSX Corp. shares jumped almost 6% in premarket trade Thursday, as the company said it's raising its quarterly dividend by 11% and unveiled a new $1 billion share buyback program. CSX reported stronger-than-expected earnings for the first quarter after the bell on Wednesday. CSX said it will pay a higher dividend of 20 cents a share on June 15 to shareholders of record as of May 31. The board is expecting to complete a $1 billion share buyback by the end of the first quarter in 2018. "In line with the company's balanced approach in deploying capital, CSX now expects to invest $2.1 billion in 2017, including approximately $270 million for Positive Train Control," it said in a statement. CSX shares have gained about 31% in 2017 so far, while the S&P 500 has gained 4.4%.
Continue Reading Below
Copyright © 2017 MarketWatch, Inc.