Canadian National Railway Dividend Stock Analysis

Canadian National Railway

Canadian National Railway (CNR.TO) (CNI) is the larger of the two Canadian railroad companies. The railroad company has a vast network and serves three coasts of North America with over 20,000 miles of tracks. The company is strategically well placed to move oil from Alberta, Bakken fields and to/from the refineries in the Gulf coast. A holding of Bill Gates’ Cascade Investments, this stock has made Mr. Gates and his investment firm very rich over the years. The company is a dividend contender having raised its dividend for 17 consecutive years, with a 5-yr dividend growth rate of 13.9% and 10-yr dividend growth rate of 17.4%.

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PS: This is my first Dividend Stock Analysis of a stock. I would appreciate any feedback you may have to share with me. Please let me know if you feel something is missing from article that ought to be covered or something that is unnecessary. Your feedback will help  me write better tailored dividend stock analysis articles in the future. Thanks in advance!

4 thoughts on “Canadian National Railway Dividend Stock Analysis

  1. I like your analysis for sure, very good and thorough. I’ve had my eye on CNI for a long time, because it seems to be a very strong company and I like railroads in general. But it is severely overvalued in my eyes, and FAST Graphs tends to agree. So it looks like I won’t be buying for a long time.

    • Thanks for the feedback, DD. Railroads have slipped through my fingers all this while and I want to add to my portfolio – but looks like this isnt the best time for it. The stock is definitely overvalued. Will keep an eye on it for later.

      Thanks again

  2. That was an outstanding analysis of Canadian National. You have gone into greater depth in your analysis than I do when looking at companies to invest in. Great job.

    Both Canadian National and Canadian Pacific are both great railways. I’m a little partial to Canadian National because my dad worked for the Illinois Central Railroad which is now part of Canadian National.

    In the US I like Union Pacific and Norfolk Southern. You may think all of these are expensive but they’re rarely cheap. I don’t have a very large position in any of these buy I do like to buy them from time to time. Your analysis reminds me why I like these railroads. I think they’ll be making and distributing money to their shareholders for decades to come.

    I wish you the best.

    Dennis McCain

    • Thanks for the feedback, Dennis. Im glad you liked the analysis 🙂
      CN has grown a lot over the years by acquiring businesses and its a great company to prefer and own – even if you end up making it an emotional decision.

      UNP and NSC are my two picks in the US as well, but I missed the boat on getting in a year ago and now I regret it. I am torn between the two and its really hard to pick one or the other. When the time is right, I might have to go with both (and CN for that matter).

      Again, thanks for the feedback. I really appreciate it and gives me the motivation to write more.

      Best wishes

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