CSX Corporation (NasdaqGS:CSX) recently announced a five-year collective bargaining agreement with the International Association of Machinists & Aerospace Workers, contributing to the completion of deals with 11 labor unions. These agreements aim to provide improved wages, enhanced health care, and additional paid time off for workers. During the past week, the company's stock price experienced a modest increase of 0.38%. This performance contrasts with the broader market downturn, where major indices like the Dow Jones and S&P 500 fell significantly amidst concerns over newly imposed U.S. tariffs and retaliatory actions. Despite market volatility affecting several sectors, CSX's focus on strengthening labor relations may have played a role in maintaining investor confidence. As the market dropped 2.5%, CSX's ability to sustain a positive return amid challenging conditions highlights its strategic positioning and commitment to its workforce, which might be positively perceived by investors.

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CSX Corporation's stock delivered a solid total return of 69.31% over the past five years, which includes both share price appreciation and dividends. This period was characterized by various developments that supported the company's performance. A key factor was the company's consistent dividend policy, highlighted by an 8% increase in early 2025. Such increases often boost investor sentiment and can play a role in shareholder returns.

Additionally, CSX's share repurchase activities, including the recent completion of its buyback program, likely contributed to demand for its stock. These moves, coupled with a valuable collaboration with Wabtec aimed at modernizing locomotives, underscore CSX's focus on operational efficiency and shareholder returns. However, it is worth noting that CSX underperformed both the broader US market and its industry over the last year, suggesting some pressures remain despite these efforts.

• Learn how CSX's intrinsic value compares to its market price with our detailed valuation report.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:CSX.

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