One of the reasons why I love investing in dividend growth companies is that management has many tolls at their disposal to generate value for their shareholders. The easiest manner is to announce a share buyback program or a dividend increase, which have minimal impact on the operations of the companies. However, if management is looking for a larger splash, they can always spin-off a business unit, merge two companies out of no-where (See Kraft) or even sell the company to the highest bidder. All of these scenarios have different impacts for us dividend growth investors. Today, I wanted to take a look at one of the rumors that has been floating around for the last couple of weeks and analyze how the move would impact my forward dividend income. Let’s dove into these Norfolk Southern (NSC) buyout rumors.
