Canadian National Dividend Stock Analysis

CNR

Canadian National Railway Co (CNR.TO)(CNI) is the second largest publicly traded railroad company in North America. The company commands an impressive 20,000 miles of rail network and the only railroad serving three coasts. The following system map image demonstrates the scale and reach of Canadian National.

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Canadian National Railway Co System Map

Canadian National is one of the best run companies in the industry. The company continues to churn out impressive numbers year after year. Qualitatively, the CN also maintains an impressive strategic advantages such as the Chicago bypass, which other railroads have to face and deal with the delays.

Railroads are the pulse of the economy. While crude shipments are on their way to a recovery thanks to the rise in oil prices, coal remains in a secular downtrend, although coal plays a very small role and CN escapes the issues faced by other competitors in the industry. CN operates at a great margin and has demonstrated to be the best in class.

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4 thoughts on “Canadian National Dividend Stock Analysis

  1. Great analysis, R2R! I like the variety of valuation models you apply. They give a well-rounded perspective.

    Sometimes, outliers skew the average too much, I feel. So, I ignore the max and min estimates when I have more than 2 estimates.

    [sum(estimates) – max(estimates) – min(estimates)]/[num(estimates) – 2]

    Just a thought.

    Take care!
    FerdiS, DivGro

  2. Great analysis. I love CNR. It has been in my watch list forever. I will wait until it looks more attractive. I would pull my trigger around $70 range. Thanks for sharing!

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