Kansas City Southern (KSU) will raise its quarterly dividend by 11.1 percent to $0.40 per share in 2019. This is the first dividend hike since 2017 by the railroad operator. KSU also announced a new $2.0 billion share repurchase program.

The next dividend is payable on January 22, 2020, to stockholders of record at the close of business on December 31, 2019. A new $1.60 per share annual dividend rate yields 1.0% at a stock price of $153.54.

“Kansas City Southern is pleased to announce a new capital allocation policy that balances our objectives of: a) investing in future growth opportunities; b) delivering meaningful capital returns to our shareholders; and c) maintaining a desirable credit profile,” stated CEO and President Patrick Ottensmeyer. “This policy aligns very well with our corporate vision, which is to consistently be the fastest-growing, best-performing, most customer-focused transportation provider in North America.”

Kansas City Southern (KCS) is a transportation holding company with railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances with other North American rail partners link the commercial and industrial centers of the U.S., Mexico and Canada.