CSX (CSX 2.10%) and Union Pacific (UNP 1.85%) are selections for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers three reasons why he's holding on to the stocks despite the companies' solid price gains since he bought them early this year.

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To summarize:

  • Valuations -- reasonable and in line with my fair-value estimates.
  • Balance sheet -- healthy, with sufficiently low debt-to-equity ratios that debt rollovers shouldn't be a problem.
  • Dividend -- well covered and growing with room to continue growing.