Canadian National Railway: On Track for Continued Success?

canadian national railway: on track for continued success?

railroad with nature background

Canadian National Railway (TSX:CNR) is one of Canada’s largest railway companies. It has a coverage network of 20,000 route miles and offers shipping services across its home country as well as in the United States. Canadian National has its headquarters in Montreal and has been operational since 1919.

Here are the reasons why this company is on the track for continued success.

Dividend payments increasing steadily over the last 10 years

As per the company’s recent earnings report, Canadian National has increased its quarterly dividend payment to $0.79. This takes the hike in annual dividend payments over the last 10 years from $0.75 to $3.16, indicating a compound annual growth rate (CAGR) of 15%. That’s impressive.

These consistent and reliable dividend hikes make CNR a valuable income stock for investors. Moreover, the company’s earnings per share have also been appreciating by 2.8% annually. These metrics highlight the company’s potential to provide higher shareholder returns by increasing the proportion of earnings payout.

Additionally, this dividend will be payable on June 30, 2023. It will be available to shareholders on record as of June 9, 2023.

CNR beats Zack’s consensus estimate in its Q1 2023 reports

According to data released on April 25, 2023, CNR’s revenue and earnings have exceeded Zack Investment Research’s consensus estimate. The latter had predicted quarterly earnings to reach US$1.26/share, while the company achieved US$1.35/share. This depicts a year-over-year growth of 29.8%.Â

Moreover, quarterly revenue has been reported at US$3,189.8 million, surpassing Zack’s estimate of US$3,152.3 million. The driving force behind this was the high fuel surcharge revenues due to an increase in fuel prices. Freight revenue also contributed significantly in this regard, with the company seeing year-over-year growth of 17%. Adjusted operating income also rose by 34.4% year over year, with figures reaching $1,662 million.

Canadian National Railways introduces continental shipping services in North America

As per reports on April 25, 2023, CNR is set to start its new container shipping services in North America. The name of this intermodal service is Falcon Premium and is a tie-up between CNR, GMXT and Union Pacific Railroad. It will extend the Canadian railway operator’s tracks from Vancouver to Halifax, Chicago, and the northern part of Mexico City.Â

The execution of this deal was to counter the recent merger of CP Rail with Kansas City Southern. It also aims to gain clients from south of the border via the trucking companies who have customers in sectors related to temperature-controlled products, food, auto parts and appliances.

Bottom line

Strong financials and superb expansion plans have set CNR on the road to achieve long-term growth. Thus, it can be justly said that this company is on track for continued success.

Should You Invest $1,000 In Canadian National Railway?

Before you consider Canadian National Railway, you’ll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in May 2023… and Canadian National Railway wasn’t on the list.

The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 23 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks

* Returns as of 5/24/23

More reading

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.

News Related

OTHER NEWS

Predictions! UFC Vegas 74 ‘Prelims’ Preview - Pt. 1

Predictions! UFC Vegas 74 ‘Prelims’ Preview – Pt. 1 The first men’s Flyweight main event of 2023 hits the ESPN airwaves this Saturday (June 3, 2023) when all-action Kai Kara-France ... Read more »

Factbox-Global firms in Uganda face LGBTQ conundrum

(Reuters) – Uganda’s tough new anti-LGBTQ law, which stipulates the death penalty for “serial offenders”, presents a conundrum for multi-nationals wanting to grow in Africa while promoting diversity and inclusion. ... Read more »

Mining, research firms look ahead to opportunities, challenges

Saskatchewan Minister of Energy and Resources Jim Reiter (centre) joins other dignitaries posing for a photo at the launch of Saskatchewan Mining Week at the Saskatchewan Research Council headquarters on ... Read more »

New screen installation underway at Regina IMAX

The gargantuan frame features 42 On Monday morning, the best show on offer at Regina’s Kramer IMAX theatre could have been seen from the parking lot. A semi-truck parked on ... Read more »

Golden Knights punch ticket to Stanley Cup Final with Game 6 blowout of Stars

For the second time in the young franchise’s six-year history, the Golden Knights are off to the Stanley Cup Final. Vegas came out like gangbusters in Game 6, scoring three ... Read more »

Taylor Swift Set For U.K. Singles Chart Splash

Taylor Swift Set For U.K. Singles Chart Splash Taylor Swift is all set for a top 10 takeover in the U.K. Following the release last Friday (May 26) of Midnights (The ... Read more »

CBE looks to hire 710 school staff for 13,000 new students over two years

The Calgary Board of Education headquarters on 8th Street and 12th Avenue S.W. Public school officials are planning to hire 710 new school-based staff over the next year as the ... Read more »

From solemn reflection to ‘three-day hootenanny’: the evolution, and degradation, of the Memorial Day holiday

From solemn reflection to ‘three-day hootenanny’: the evolution, and degradation, of the Memorial Day holiday ASSOCIATED PRESS NORFOLK, Va. (AP) — Memorial Day is supposed to be about mourning the ... Read more »

White Sox place Jimmy Lambert on 15-day injured list

Chicago White Sox relief pitcher Jimmy Lambert White Sox GM Rick Hahn told reporters (including The Athletic’s James Fegan) that right-hander Jimmy Lambert has been placed on the 15-day injured list ... Read more »

Hayley Kiyoko Is ‘Honoured’ To Headline Canada’s First Queer Music Festival: ‘I’m So Proud Of Toronto’

Hayley Kiyoko live in concert, opening for Lauv at the Greek Theater in Berkeley, CA. Hayley Kiyoko in concert, The Greek Theater, Berkeley, CA, USA – 15 Sep 2022 Hayley ... Read more »

Penguins’ Evgeni Malkin Named a Top Draft Pick of All-Time

The NHL is getting ready to host their 60th entry draft and they decided to celebrate by ranking the top 60 draft picks of all-time; a list there are sure ... Read more »

The NBA Finals are set: It's the Heat and the Nuggets for the Larry O'Brien Trophy

The NBA Finals are set: It’s the Heat and the Nuggets for the Larry O’Brien Trophy Cancel that flight plan, Denver. Turns out, the NBA Finals are starting in the ... Read more »

Drury, Angels spoil Hendriks' return with 6-4 victory over White Sox

Drury, Angels spoil Hendriks’ return with 6-4 victory over White Sox CHICAGO (AP) — Brandon Drury and Matt Thaiss homered during a fast start for the Los Angeles Angels, who ... Read more »

Tim Tszyu injury: Carlos Ocampo fight to go ahead despite emergency surgery following dog bite

Tim Tszyu injury: Carlos Ocampo fight to go ahead despite emergency surgery following dog bite Tim Tszyu’s upcoming fight against Carlos Ocampo won’t be scrapped after the Aussie required emergency ... Read more »

Windsor city council endorses plan for civic esplanade project

Windsor council chambers are shown in a file photo. Plans for a sweeping redesign of the corridor from Windsor city hall to the Detroit River took a big step forward Monday ... Read more »

China launches mission with first civilian to space station

Long March-2F rocket, carrying the Shenzhou-16 Manned Space Flight Mission, lifts off from the Jiuquan Satellite Launch Centre in China’s northwestern Gansu province, on May 30 2023, heading to the ... Read more »

Capitals’ rough and rowdy prospect Ryan Hofer loves to get in your face

A view of the Washington Capitals logo worn by a member of the team. Ryan Hofer plays a rough and tough throwback style of hockey. He calls it “a little ... Read more »

Biden says he and Erdogan talked about F-16s, Sweden's NATO bid

FILE PHOTO: A Turkish Air Force F16 jet lands at a new airport under construction in Istanbul By Steve Holland and Humeyra Pamuk WASHINGTON (Reuters) -U.S. President Joe Biden said ... Read more »

Blockchain.com CEO says US default would hit crypto initially

Illustration shows representations of cryptocurrencies By Andrew Mills DOHA (Reuters) – A U.S. government default would trigger an initial pull-back from crypto currencies followed by a “push upward” the CEO ... Read more »

The ‘Angel of Alkmaar’, landing haymakers for club, king and country

Photograph: DeFodi Images/Getty Images BUBBLES. LOTS OF BUBBLES In the wake of West Ham’s Tin Pot semi-final win over AZ last week, one man was honoured as a hero, the ... Read more »

Your pets produce just as much pollution as private jets, says luxury aviation company boss

A private jet interior. Marin Tomas/Getty Images Luxaviation’s CEO told a FT summit that one of his firm’s clients produced as much CO2 as three dogs per year. He was ... Read more »

YOU SAID IT: Our buffoon

Italian Prime Minister Giorgia Meloni, French President Emmanuel Macron and Prime Minister Justin Trudeau take part in a working lunch session at the G7 Leaders’ Summit in Hiroshima, Japan, on ... Read more »

Dems Insisted They Wouldn’t Negotiate. Then Biden Started Negotiating.

Photo Illustration by Thomas Levinson/The Daily Beast/Getty/Reuters With just days to go until a catastrophic default on U.S. debt, Republicans are openly bragging that in exchange for accepting massive spending ... Read more »

Australia's Treasury Wine warns of demand hit from inflation

Bottles of Penfolds Grange on sale at a wine shop in Sydney By Navya Mittal and Echha Jain (Reuters) -Australia’s Treasury Wine Estates warned on Thursday that inflation was squeezing ... Read more »

A quarter of Canadians plan to buy investment property in next five years: Royal LePage survey

Royal LePage said a new study uncovered a strong desire among Canadians to purchase a home for investment purposes. Approximately 11 per cent of Canadians currently invest in residential real ... Read more »

Vietnam's VinFast recalls first batch of US-bound EVs over security risk

2022 Paris Auto Show HANOI (Reuters) -Vietnamese electric vehicle (EV) maker VinFast is recalling all of the first batch of vehicles it shipped to the United States following a security ... Read more »

Nicole Kidman Uses This Brightening Concealer for Flawless, Radiant Skin at 55

Nicole Kidman showed off her glowing, radiant skin on the 2023 Met Gala red carpet. The star’s makeup artist revealed that she used Chanel’s Le Correcteur de Chanel Longwear Concealer ... Read more »

As governments shirk their responsibilities, non-profits are more important than ever

In a neoliberal era, where profitability is prioritized over social duty, all orders of government in Canada are increasingly shirking responsibility for providing social services onto non-profits. You’ve likely walked ... Read more »

Biden set to nominate Air Force Gen. C.Q. Brown as the next chairman of the Joint Chiefs of Staff

President Joe Biden is set to announce on Thursday that he will nominate Air Force chief of staff Gen. Charles Q. Brown as the next chairman of the Joint Chiefs ... Read more »

British EV maker Arrival seeks second chance with US EV tax credits

Jules Carter, vice president of the L-Van program at electric van maker Arrival, walks next to a working prototype vehicle at the company’s factory in Bicester By Paul Lienert and ... Read more »
Kênh kiến thức kỹ năng, phát triển bản thân, hướng nghiệp, blog nhân sự