Thursday, January 27, 2022

Dividend Increase - Canadian National Railway Company (CNR)


Tuesday, January 25th the Board of Directors of Canadian National Railway Company (CNR) announced a quarterly dividend increase of from C$ 0.615 to C$ 0.7325 per share that’s payable March 31, 2022 to holders of record March 10, 2022. This represents a 19.11% increase over the last quarterly dividend.


In addition, the Company’s Board of Directors also approved a new Normal course issuer bid (NCIB) that permits CN to purchase, for cancellation, over a 12-month period up to 42 million common shares, starting on February 1, 2022, and ending no later than January 31, 2023.


This is the 26th consecutive year of dividend increases.


With current price C$ 150.56 (yesterday's close), this raise brings their dividend yield to 1.95%.


CNR is a member of Canadian Dividend All Star List with a 26 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 7.0, 10.6, 10.4 and 14.2 (Canadian Dividend All-Star List)



Since I own 10 shares of CNR, this will increase my portfolio's projected annual net dividend income by $ 2.77.


I was expecting an increase of around 10%, so this was a big and pleasant surprise.


This is the 1st dividend increase I've received from Canadian National Railway Company since initiating a position in December 2021.


This increase raises my YOC to 1.87%.



Summary of 2022 Dividend Increases / Cuts



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long CNR


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