Topic: How To Invest

Dividend Advisor Hotline – Friday, September 24, 2021

Article Excerpt

CANADIAN NATIONAL RAILWAY CO., $146.55, Toronto symbol CNR, remains 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 1.7%. The company has dropped its deal to buy U.S.-based Kansas City Southern (New York symbol KSU) now that KCS has accepted a rival offer from Canadian Pacific Ltd. (Toronto symbol CP). That’s mainly because the U.S. Surface Transportation Board recently rejected the company’s plan to set up an independent voting trust as part of the acquisition. Without that trust structure, KCS investors would have to wait until sometime in 2022 to receive their compensation, assuming CN could have even won regulatory approval. CN will now receive $1.4 billion U.S. in termination fees from KCS. That consists of…

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