5 Best Railroad Stocks to Buy in 2025

A guide to the businesses that keep America rolling.

By Lou Whiteman – Updated Jul 7, 2025 at 5:28 PM | Fact-checked by Frank Bass

Key Points

Railroads maintain a key economic role, reliably moving goods even during disruptions like pandemics.
Rail industry consolidation has improved efficiency and increased shareholder returns.
Top railroad stocks such as Union Pacific and Canadian Pacific offer steady dividends.

Railroad stocks were responsible for one of the first big investment booms in U.S. history. More than a century later, railroads remain a key part of the economy. Railroad stocks offer ownership in the companies that operate in the railway industry. Over the years, the industry has consolidated to a handful of titans responsible for moving most of the goods around the country and to and from ports.

Loading paragraph...

A train rolling through fields. — Image source: Getty Images.

Loading image...

Loading paragraph...

Loading pitch...

Loading paragraph...

Ticker Information Table
Name and ticker	Market cap	Industry
Union Pacific (NYSE:UNP)	$130.5 billion	Road and Rail
Canadian Pacific Kansas City (NYSE:CP)	$69.7 billion	Road and Rail
Canadian National Railway (NYSE:CNI)	$59.9 billion	Road and Rail
CSX (NASDAQ:CSX)	$66.2 billion	Road and Rail
Norfolk Southern (NYSE:NSC)	$69.5 billion	Road and Rail

Data as of Oct 24, 2025.

Loading ticker_table...

Loading paragraph...

NYSE: UNP

Union Pacific

Today's Change

(-2.31%) $-5.20

Current Price

$220.04

Key Data Points

Market Cap

$131B

Day's Range

$219.10 - $225.94

52wk Range

$204.66 - $256.84

Volume

1.3K

Avg Vol

4.7M

Gross Margin

45.84%

Dividend Yield

0.02%

Loading company_card...

Loading paragraph...

NYSE: CP

Canadian Pacific Kansas City

Today's Change

(-0.73%) $-0.56

Current Price

$75.94

Key Data Points

Market Cap

$70B

Day's Range

$75.69 - $77.01

52wk Range

$66.49 - $83.65

Volume

380

Avg Vol

Gross Margin

39.58%

Dividend Yield

0.01%

Loading company_card...

Canadian Pacific was historically the smaller of the two major Canadian railroads. That changed with the company's 2023 acquisition of Kansas City Southern. The deal gave Canadian Pacific a vast network down the spine of North America to a deep-water port in Mexico. This network, coupled with its existing east-west track across Canada, allows freight to travel around the continent seamlessly.

Loading paragraph...

Loading pitch...

Loading paragraph...

NYSE: CNI

Canadian National Railway

Today's Change

(-0.16%) $-0.15

Current Price

$95.96

Key Data Points

Market Cap

$60B

Day's Range

$95.64 - $96.86

52wk Range

$91.07 - $114.13

Volume

Avg Vol

1.7M

Gross Margin

43.69%

Dividend Yield

0.03%

Loading company_card...

Canadian National has been public only since the mid-1990s, but the government entity-turned-private company provides access to almost every corner of Canada and a shipping link to the Gulf of Mexico. The railroad has more than 20,000 route miles of track and hauls agricultural products, energy, and containers from coast to coast.

Canadian National offers something that its U.S. counterparts can't match: Access to both the Atlantic and Pacific oceans, as well as all of the geography in between. The company is well-positioned to benefit from strong demand for Canadian energy assets and the impact of companies bringing their supply chains to North America.

Loading paragraph...

Train track in the sunset. — Image source: Getty Images.

Loading image...

Loading paragraph...

NASDAQ: CSX

CSX

Today's Change

(-1.09%) $-0.39

Current Price

$35.53

Key Data Points

Market Cap

$66B

Day's Range

$35.41 - $35.95

52wk Range

$26.22 - $37.25

Volume

230

Avg Vol

19M

Gross Margin

33.89%

Dividend Yield

0.01%

Loading company_card...

Loading paragraph...

Loading pitch...

Loading paragraph...

NYSE: NSC

Norfolk Southern

Today's Change

(-1.66%) $-4.80

Current Price

$283.83

Key Data Points

Market Cap

$69B

Day's Range

$283.41 - $289.62

52wk Range

$201.63 - $302.24

Volume

Avg Vol

2.1M

Gross Margin

36.06%

Dividend Yield

0.02%

Loading company_card...

Norfolk Southern is the other Eastern-focused railroad, operating more than 19,000 track miles across 22 states and the District of Columbia. The company is a major transporter of industrial, agricultural, and consumer products and is a primary source of transportation for coal and auto parts. Norfolk Southern also has an extensive intermodal network in the East that carries containers from ship hulls to truck flatbeds.

Norfolk Southern's revenue has grown at a 12% annualized rate over the past five years, and its dividend currently yields more than 2.1%. The company has hiked its dividend four times since the beginning of 2021 and doubled its share repurchase target. In years to come, Norfolk Southern plans to return between 35% and 40% of net income to shareholders through continued dividends.

Loading paragraph...

Investing in Transportation ETFs

Exchange-traded funds composed of transportation companies can help your portfolio fly.

Investing in Industrial Stocks

Industrial companies span several subsectors of the economy they support.

What Does Berkshire Hathaway Own?

Find out what stocks Warren Buffett's Berkshire Hathaway owns and what the Oracle of Omaha looks for in a company.

Infrastructure Stocks to Invest in During 2025

Infrastructure is the backbone of the economy, so these companies can help build your portfolio.

Loading hub_pages...

Loading paragraph...

Loading pitch...

Loading paragraph...

Loading faq...

About the Author

Lou Whiteman is a contributing Motley Fool industrials and financial services analyst covering aerospace, defense, transport, manufacturing, specialty finance, and bank stocks. Previously, Lou was a financial analyst and senior writer for TheStreet, a venture capital specialist for The Deal LLC, and a high school personal finance teacher. He holds a bachelor’s degree in communications from Loyola University Maryland and completed a fellowship at the ABA Stonier Graduate School of Banking.

TMFeldoubleu

@louwhiteman

Lou Whiteman has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, Canadian Pacific Kansas City, and Union Pacific. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.