Topic: How To Invest

Dividend Advisor Hotline – Friday, November 29, 2019

Article Excerpt

CANADIAN NATIONAL RAILWAY CO., $120.61, Toronto symbol CNR, is still a buy. The company 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. CN last raised its quarterly dividend with the March 2019 payment. Investors now receive $0.5375 a share, up 18.1% from $0.455. The new annual rate of $2.15 yields 1.8%. This week, the company reached a new deal with the union representing 3,200 of its workers (13% of its total workforce), including conductors, trainpersons and yard workers. That ended an eight-day-long strike. The strike will hurt CN’s earnings in the fourth quarter of 2019, but should have no impact on its ability to keep raising dividends for investors. Meantime, ongoing trade tensions between the U.S. and China have hurt volumes on CN’s network. In response, the company still plans to lay off about 1,600 workers, including management and union members. CN has yet to reveal how…

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