Topic: How To Invest

The Successful Investor Hotline – Friday, January 17, 2020

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $343.08, Toronto symbol CP, is our #1 Conservative Buy for 2020. 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 it did not disappoint—jumping 31.0% for our subscribers in the past year compared to a 15.5% gain for the S&P/TSX Composite Index. Despite that impressive increase, we feel CP can move even higher for investors this year. You should benefit from the new U.S.-Mexico-Canada trade deal, which is set to spur more cross-border shipments of commodities and manufactured goods. As well, demand for its crude-by-rail service should remain strong due to a lack of new pipeline capacity. The company will probably earn $18.29 a share in 2020, and the stock trades at a reasonable 18.8 times that forecast. The $3.32 dividend yields 1.0%. CP Rail recent coverage: January 2020 issue Hotline for November…

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