Two blue chip leaders with growth in store

Article Excerpt

Here are two of our top safety-conscious stock recommendations. Both have strong growth plans in place; that should boost their prospects and at the same time, spur their share prices. CANADIAN PACIFIC RAILWAY $98.32, is a buy. The company (Toronto symbol CP; shares outstanding: 929.9 million; Market cap: $91.6 billion; Rating: Above Average; Dividend yield: 0.8%) 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 cash-and-shares deal is worth $28 billion U.S. Meantime, thanks to re-opening of the economy and higher shipping rates, CP’s revenue in the three months ended June 30, 2022, rose 7.2%, to $2.20 billion from $2.05 billion a year earlier. If you exclude costs related to the KCS purchase and other unusual items, earnings in the quarter jumped 28.0%, to $882 million from $689 million. That’s mainly due to CP’s share of KCS’s earnings,…