cn rail

CANADIAN PACIFIC RAILWAY LTD., $92.27, Toronto symbol CP, is your #1 Conservative Buy for 2022.

CP ships freight over a 23,700-kilometre rail network, mainly between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast.

The company is now in the process of merging with U.S.-based railway Kansas City Southern....

The traditional telecommunications service providers, such as Telus and BCE, are trading at substantially lower valuations than other “infrastructure” type companies. This is not only true for Canadian companies, but also for U.S. and other similar companies in Europe.


Infrastructure type companies such as telecommunications, pipelines, utilities, and railroad companies have delivered comparable financial results over the past five years—so this provides scant reason for the significant valuation differences....

Dear Inner Circle Member,

Canadian National Railway’s $33.6 billion U.S. takeover attempt for rival Kansas City Southern failed after regulators blocked a key condition of the deal. As a result, KCS has now agreed to merge with Canadian Pacific Railway—CN’s main competitor.

Investors tend to dislike the risk that comes with big acquisitions, and CN stock rallied on the news....

While activist investors have a spotty record of success, it’s still worth keeping an eye on them given their focus on finding hidden value. Here are two companies now being targeted by activists. That should benefit all investors. Still, we see just one of the picks as right for your new buying.


CANADIAN NATIONAL RAILWAY CO....

CANADIAN NATIONAL RAILWAY CO. $146 is a buy. The company (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 709.8 million; Market cap: $103.6 billion; Price-to-sales ratio: 7.3; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.cn.ca) operates Canada’s largest railway, stretching across the country, and passing through the U.S....

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects.

CANADIAN NATIONAL RAILWAY CO. $122 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 720.7 million; Market cap: $87.9 billion; Price-to-sales ratio: 6.0; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.cn.ca) operates Canada’s largest railway, stretching across the country, and passes through the U.S....

The lack of new pipeline capacity in Canada and parts of the U.S. continue to force oil producers to transport more of their crude by rail.

The situation is likely to continue for some time, as both Enbridge and TC Energy (formerly TransCanada) face strong legal and environmental opposition to their proposed new pipelines....

CANADIAN NATIONAL RAILWAY CO. $125 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 721.4 million; Market cap: $90.2 billion; Price-to-sales ratio: 6.1; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.cn.ca) operates Canada’s largest railway....

CANADIAN NATIONAL RAILWAY CO. $113 (Toronto symbol CNR; Conservative Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 726.0 million; Market cap: $82.0 billion; Dividend yield: 1.9%; Dividend Sustainability Rating: Highest; www.cn.ca) operates Canada’s largest railway....