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CN Announces New Normal Course Issuer Bid for Share Repurchase and 5% Dividend Increase
CNICanadian National Railway pany(CNI) Newsfilter·2025-01-30 21:06

Core Viewpoint - CN has announced a 5% increase in its 2025 dividend and a new share repurchase program, reflecting confidence in its financial strength and commitment to enhancing shareholder returns [1][2]. Dividend Announcement - The Board of Directors approved a quarterly dividend of C0.8875percommonshare,payableonMarch31,2025,toshareholdersofrecordbyMarch10,2025[5].ShareRepurchaseProgram−CN′snewnormalcourseissuerbidallowsfortherepurchaseofupto20millioncommonshares,representing3.180.8875 per common share, payable on March 31, 2025, to shareholders of record by March 10, 2025 [5]. Share Repurchase Program - CN's new normal course issuer bid allows for the repurchase of up to 20 million common shares, representing 3.18% of the total shares outstanding as of January 23, 2025 [2][3]. - The repurchase will occur over a 12-month period, from February 4, 2025, to February 3, 2026, using various methods including discretionary transactions and automatic repurchase plans [2][3]. - The previous repurchase program, which allowed for the purchase of up to 32 million shares, is set to expire on January 31, 2025, with 13,940,250 shares repurchased at an average price of C168.00 [4]. Financial Management - CN maintains an adjusted debt-to-adjusted EBITDA target of 2.5x, indicating a focus on financial stability and prudent capital management [2][7].