Investing in Railroad Stocks...

I can only say look at the performance of Union Pacific (UNP), Norfolk Southern (NSC) and to a lesser extent Kansas City Southern (KSU) over the past 2 years.  They aren't flashy or go up huge amounts overnight but are steady, decent performers.  UNP split during that period.  They pay dividends as well. 

I sold off some unused trains about 2 years ago and after doing a lot of research decided I was going to use the money to buy...trains!  Those 3 had the best fundamentals at the time.   I only wish I could have bought more!

I watch myself against letting my personal enthusiasm for any industry or company color my investments, but I have about 8% or something like that in RRs.  As you say they are steady performers - and they should be their business in linked to the general economy pretty directly.  Most are well run.  And I love dividends - good income with up to now) a lower income tax designation.  

I remembered that people would buy enough stocks so they would have enough o live off the dividends.  That means if a company was producing dividends, it was healthy.  None of this owning stocks because of a stocks worth.  Today, the Stock Market would be worth NOTHING if that older standard was in use.

I puchased some Union Pacific stock just over two years ago.  If has performed very well, up 76% (but most stocks have performed well the last 4-5 years).   Also has a small dividend (1.8%).

RR stocks are not a big % of my portfolio.    I like to diversify in numerous industries ( tech, consumer goods, REIT's, oil, pharm, transportation, healthcare, communications, etc)

You have to keep in mind that in general, investors, and most people, are short-sighted. Everyone is out for that Big Score. They want to get rich right now, or go broke trying.

Never had the money to invest in stocks and the way the stock market is stacked against the small investor I'm not sorry I never did invest in stocks.