CSX (NASDAQ:CSX) and Union Pacific (NYSE:UNP) 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.

Chuck Saletta owns shares of Union Pacific and CSX. The Motley Fool owns shares of CSX. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.