Topic: How To Invest

Dividend Advisor Hotline – Friday, February 3, 2023

Article Excerpt

CANADIAN NATIONAL RAILWAY CO., $160.66, Toronto symbol CNR, is a buy. CN operates Canada’s largest railway. Its 29,900-kilometre network stretches across the country. It also travels down through the U.S. Midwest, connecting Canada to the Gulf of Mexico. Starting with the March 2023 payment, CN will raise your quarterly dividend by 7.8%. Investors will then receive $0.79 a share instead of $0.7325. The new annual rate of $3.16 yields 2.0%. Moreover, the company plans to repurchase up to $4 billion of its shares in the next year. That’s in addition to the $4.82 billion it spent on buybacks under its previous authorization. Meantime, the company’s revenue in the fourth quarter of 2022 rose 21.0%, to $4.54 billion from $3.75 billion a year earlier. That beat the consensus forecast of $4.48 billion. The increase is due to higher fuel surcharges and freight rates. CN also benefitted from rising Canadian grain shipments and a weaker Canadian dollar, which increased the contribution from its U.S. operations. Earnings before…