Canadian Pacific Railway Ltd. (CP) is the smaller of the two Canadian railroad companies operating approximately 13,700 miles of network, serving business centers from west coast to east coast Canada and the United States Northeast and Midwest regions. The company has come a long way and has turned to become one of the most efficient and profitable companies in the sector. In a matter of three years, the operating margins have doubled. However, dividend growth investors have found it disappointing as the company has not raised dividends since 2012. With a low starting yield of 0.75% and low payout ratio of 15%, there is plenty of room for those dividends to grow, but the company – thanks to its largest shareholder Pershing Square Capital has gone the route of share buybacks to return cash to shareholders. That trend is expected to continue as the company intends to raise more cash from the debt markets to issue further buybacks.