Topic: How To Invest

Dividend Advisor Hotline – Friday, May 21, 2021

Article Excerpt

CANADIAN NATIONAL RAILWAY CO., $125.80, Toronto symbol CNR, is still a buy. CN operates Canada’s largest railway. Its 32,200-kilometre network stretches across the country. It also travels down through the U.S. Midwest, connecting Canada to the Gulf of Mexico. With the March 2021 payment, the company increased your quarterly dividend by 7.0%. Investors receive $0.615 a share instead of $0.575. The new annual rate of $2.46 yields 2.0%. U.S.-based railway Kansas City Southern (New York symbol KSU) has now formally accepted CN’s revised takeover and cancelled its earlier merger deal with Canadian Pacific Railway Ltd. (Toronto symbol CP). KCS operates a rail network of roughly 11,400 kilometres extends from the U.S. Midwest and Southeast into Mexico. Under CN’s new offer, it will pay $200.00 U.S. in cash plus 1.129 of a CN common share (up from 1.059) for each KCS share. Based on current prices, that works out to $317.74 U.S., which is above the KCS’s current trading price of $295.00 U.S. KCS shareholders will…