Canadian National (CNI) is a Top Dividend Stock Right Now: Should You Buy?

Company Overview - Canadian National (CNI) is based in Montreal, Quebec, and operates in the Transportation sector, specifically in railroads. The company's shares have experienced a price change of 1.51% this year [3]. Dividend Information - CNI currently pays a dividend of $0.65 per share, resulting in a dividend yield of 2.52%, which is higher than the Transportation - Rail industry's yield of 1.52% and the S&P 500's yield of 1.55% [3]. - The annualized dividend of CNI is $2.59, reflecting a 5.7% increase from the previous year. Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 7.31% [4]. Earnings Growth and Future Outlook - For the fiscal year, CNI anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $5.65 per share, indicating a year-over-year earnings growth rate of 9.07% [5]. - The future growth of dividends will depend on earnings growth and the payout ratio, which is currently at 47%, meaning CNI pays out 47% of its trailing 12-month earnings per share as dividends [4]. Investment Considerations - CNI is considered a compelling investment opportunity due to its strong dividend profile. The stock currently holds a Zacks Rank of 3 (Hold) [6].