Core Viewpoint - Canadian National Railway Company (CNI) is highlighted as a top choice for dividend-focused investors due to its consistent performance, long dividend growth streak, and stability during market volatility [14][18]. Company Overview - Canadian National operates the largest rail network in Canada and one of the largest in the U.S., covering nearly 20,000 miles and providing essential services with a diversified cargo base [3]. - The company has an industry-leading operating ratio, although it saw a slight increase in Q1 2024 [3]. Financial Metrics - Revenue growth rates for Canadian National are as follows: - 10-Year CAGR: 4% - 5-Year CAGR: 3% - 3-Year CAGR: 7% - Year-over-Year: -5% [6]. - Profitability metrics indicate stable performance: - ROE (10Y avg.): 20% - ROIC (10Y avg.): 14% [6]. - Canadian National's P/E Non-GAAP (TTM) is 22.4, which is below its 5-Year average of 23.2, indicating potential undervaluation [7][12]. Dividend Analysis - Canadian National has a 27-year streak of dividend growth, with a forward yield of 2.08% and a 5-Year CAGR of 9.98% [10]. - The payout ratio stands at 44.6%, reflecting a balanced approach to returning capital to shareholders [10]. Valuation and Price Target - The current price of Canadian National is $120.00, with an estimated EPS of $5.83, suggesting a fair value of $131.51, indicating it is approximately 8.75% undervalued [9][12][17]. - Analysts have a price target of $134.62, suggesting a potential upside of around 12% [12]. Investment Thesis - Canadian National is positioned as a solid option for dividend-focused investors, outperforming peers like Union Pacific and CSX in terms of stability and dividend growth [14][18].

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------|-------|-------|-------|-------|-------|-------------------------------------------------------|---------|---------|---------|---------| | MEETING DATE 300-325 325-350 350-375 375-400 400-425 425-450 | | | | | | CME FEDWATCH TOOL - CONDITIONAL MEETING PROBABILITIES | 450-475 | 475-500 | 500-525 | 525-550 | | 31.07.2024 | | | | | 0,0% | 0,0% | 0,0% | 0,0% | 6,7% | 93,3% | | 18.0 ...

The Zacks Transportation - Rail industry faces challenges, ranging from inflationary pressures and resultant high interest rates to concerns pertaining to supply-chain disruptions. Despite the challenges surrounding the industry, Canadian National Railway Company (CNI) , Canadian Pacific Kansas City Limited (CP) , CSX Corporation (CSX) and Norfolk Southern Corporation (NSC) appear better placed to tide over the challenges. Declining fuel costs represent a tailwind as far as bottom-line growth is concerned. ...

In 2023, the company's revenue growth was impacted by operational disruptions brought on by adverse climate conditions, including flooding and forest fires. Further, labor strikes at West Coast ports, related to the duty and rest period rules mandated in Canada in May 2023, negatively impacted revenue growth. In the first quarter of 2024, the company's revenues declined by 1.5% Y/Y to $4.249 billion, mainly due to lower freight revenue per RTM (Revenue Ton-Miles). The freight revenue per RTM declined by 1.7 ...

Canadian National's (CNI) efforts to reward its shareholders through dividends and buybacks despite the ongoing economic uncertainty are commendable. However, the freight market downturn is severely impacting the company's performance. Factors Favoring CNI Canadian National increased its quarterly dividend by 7% in January. This is the 28 consecutive year when the company announced a dividend hike. CNI paid quarterly dividends of $0.85 per share, amounting to $540 million in the first quarter of 2024. As of ...

Canadian National: Based in Montreal, Canada, Canadian National is involved in the rail, intermodal, trucking, and marine transportation and logistics business in Canada and the United States. Currently, CNI has a market capitalization of $77.22 billion. Partly due to these headwinds, the industry has declined 6.4% so far this year, underperforming the S&P 500 Index's 7.5% appreciation and a 5.9% loss of the broader Zacks Transportation sector. How to Pick Stocks With Solid Dividend Payouts? 2023, the compa ...

Media Investment Community Jonathan Abecassis Stacy Alderson Director, Public Affairs and Assistant Vice-President Media Relations Investor Relations As the union refused to negotiate substantively on this matter, CN made a simplified offer to the union in May that continued to be aligned with Government guidelines on work and rest and achieved some productivity gains. The union rejected this offer as well. MONTREAL, June 06, 2024 (GLOBE NEWSWIRE) -- CN (TSX:CNR) (NYSE:CNI) today announced that earlier this ...

MONTREAL, June 03, 2024 (GLOBE NEWSWIRE) -- CN (TSX:CNR) (NYSE:CNI) announced today that it would be expanding its partnership with Canada's Sports Hall of Fame in support of Indigenous athletes and sport builders, and their stories. As we mark the start of National Indigenous History Month, this new three-year $450,000 agreement will help to recognize the significant contributions of Indigenous sports figures and promote a greater understanding of their impact on Canadian sports and culture. About Canada's ...

MONTREAL, May 29, 2024 (GLOBE NEWSWIRE) -- CN (TSX:CNR) (NYSE:CNI) today announced the addition of two new firefighting trains along with two additional railcars to its fire mitigation and suppression fleet. With wildfires underway across Canada, this specialized fleet, the Trident and the Neptune trains will join CN's existing firefighting train, Poseidon. Together, these three trains will provide support in combatting wildfires along CN's right-of-way, bringing a significant amount of water and fire suppr ...

MONTREAL, May 24, 2024 (GLOBE NEWSWIRE) -- Tracy Robinson, President and Chief Executive Officer, and Ghislain Houle, Executive Vice-President and Chief Financial Officer of CN (TSX:CNR) (NYSE:CNI), will address the Bernstein's 40th Annual Strategic Decisions Conference on May 31, 2024 at 9:00 a.m. Eastern Time (ET). CN will provide a live webcast via the Investors section of its website at www.cn.ca/investors. A replay of the webcast will be available following the event. About CN CN powers the economy by ...