On Friday, January 30, 2026, the Board of Directors of Canadian National Railway Company (TSE: CNR) announced a quarterly dividend increase from C$0.887 to C$0.915 per share. The dividend will be payable on March 31, 2026, to shareholders of record as of March 10, 2026. This represents a 3.16% increase over the prior quarterly dividend.
Commenting on the announcement, Ghislain Houle, Executive Vice-President and Chief Financial Officer of CN, stated:
“These actions reflect CN’s strong cash flow and our disciplined approach to managing capital. We are investing in the business, returning capital to shareholders and maintaining a strong balance sheet to support long-term performance.”
Current Dividend Yield and Income Impact
At yesterday’s closing price of C$137.07, this dividend increase raises Canadian National Railway’s forward dividend yield to approximately 2.67%. While not a high-yield stock, CNR continues to offer a blend of income, growth, and stability within the Canadian industrial sector.
As an owner of 50 shares of Canadian National Railway Company, this increase adds $3.06 to my projected annual net dividend income. Despite CNR’s historically strong dividend growth, increases have slowed in recent years. I was expecting a raise closer to 5%, so this roughly 3% increase was a clear disappointment.
Long-Term Dividend Growth Track Record
Canadian National Railway is a member of the Canadian Dividend All-Star List, with an impressive 30-year streak of dividend increases. According to the Canadian Dividend All-Star List, CNR’s long-term dividend growth rates remain strong:
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1-year: 5.0%
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3-year: 6.6%
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5-year: 9.1%
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10-year: 11.0%
This increase marks the fifth consecutive dividend raise I’ve received from CNR since initiating my position in December 2021. Over this period, the quarterly dividend has grown from C$0.615 to C$0.915 per share, representing a 48.8% increase, which is still respectable despite recent deceleration.
At the time of writing, CNR represents approximately 0.51% of my portfolio and contributes about 0.36% of my projected annual dividend income. Following this increase, my yield on cost stands at 5.91%.
Quick Valuation Take
At current levels, Canadian National Railway appears fairly valued to slightly expensive, reflecting its premium status as one of North America’s highest-quality rail operators. Investors continue to pay up for CNR’s irreplaceable network, pricing power, and strong margins, even as near-term growth moderates.
Dividend Safety and Outlook
CNR’s dividend remains very safe, supported by strong free cash flow, a conservative payout ratio, and a durable business model with high barriers to entry. While dividend growth may remain more modest going forward, the company’s balance sheet strength and cash flow generation suggest continued, sustainable dividend increases over time.
Final Thoughts
While the size of this dividend increase fell short of my expectations, Canadian National Railway remains a high-quality, long-term dividend growth holding. Slower growth is somewhat disappointing, but the combination of safety, consistency, and long-term compounding keeps CNR firmly in my portfolio.
Summary of 2026 Dividend Increases / Cuts
Full Disclosure: Long CNR
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