Canadian National Railway Company (CNR.TO/CNI) announced a 20% increase in its cash dividend. The quarterly cash dividend will increase from C$0.3125 to C$0.375 per share and payable on Mar 31, 2016 to shareholders on record as of Mar 10, 2016.
Including today’s announcement, CN has declared annual increases to its dividend 20 consecutive times, averaging 17 per cent per year, since its initial public offering of shares in 1995. The annual dividend rate goes up from C$1.25 to C$1.50. Yield going forward based on today’s closing stock price is 2.10%.
Canadian National Railway Dividends & Dividend Growth Rates
From the press release statement:
Luc Jobin, CN executive vice-president and chief financial officer, said: “We are pleased to uphold our track record of consistently returning cash to shareholders. This dividend increase is testimony to our confidence in the strong cash flow generation capacity of CN throughout business cycles, and reaffirms our objective of gradually increasing the dividend payout ratio toward 35 per cent.“
My portfolio consists of 52 shares of Canadian National Railway, which increases my annual dividends from C$65.00 to C$78.00, an increase of C$13.
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