Topic: How To Invest

The Successful Investor Hotline – Friday, January 15, 2021

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $454.23, Toronto symbol CP, is our #1 Conservative Buy for 2021. Through their shares, investors tap a company shipping freight over a 22,000-kilometre rail network between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast. CP was our #1 pick in 2019 and 2020, and it continues to impress. Despite the disruptions caused by COVID-19, the stock still jumped 34.3% for our subscribers in the past year compared to a 1.9% gain for the S&P/TSX Composite Index. Despite that impressive increase, we feel CP can keep moving higher. The rollout of new COVID-19 vaccines should let more businesses re-open and spur freight volumes. An improving economy should also increase shipments of commodities like oil, coal, copper and grain; about 40% of CP’s revenue comes from hauling commodities. The company will probably earn $20.00 a share in 2021. The stock trades at a reasonable 22.7 times that forecast. The $3.80 dividend yields 0.8%. CP Rail is…

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