An ideal investment for the long haul

With a strong history, railroads are likely to remain a constant presence well into the future.

Bryan Borzykowski 16 March, 2017 | 5:00PM

When it comes to investing, boring is often best, and there may be no more mundane a sector than railroads.

For nearly 200 years, rail companies have been shipping goods. While freights have changed and CEOs have come and gone, these businesses continue to transport goods across North America. It's this constant presence that makes railroads an ideal holding for long-term investors, says Keith Schoonmaker, Morningstar's director of industrials equity research.

"There's no question these companies will be around for years," he says. "And it's still the cheapest way to move freight when no waterway is available."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Canadian National Railway Co143.79 CAD0.07
Canadian Pacific Railway Ltd424.04 CAD-0.01
CSX Corp92.24 USD-0.73
Norfolk Southern Corp241.46 USD-0.44
Union Pacific Corp207.24 USD-0.70
United Parcel Service Inc Class B170.50 USD-1.27

About Author

Bryan Borzykowski

Bryan Borzykowski  Bryan Borzykowski is a Toronto-based business and investments writer. He’s contributed to the New York Times, CNBC, BBC Capital, CNNMoney and several other publications. Bryan’s also written three personal finance books and appears regularly on CTV News.

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