Tuesday, January 25, 2011
CNR Keeps On Chugging
I found out today that CN's Board of Directors has approved a 20 per cent increase in the Company's quarterly cash dividend. "A quarterly dividend of thirty-two and one-half cents (C$0.325) per common share will be paid on March 31, 2011, to shareholders of record at the close of business on March 10, 2011."
CN has increased its cash dividend for 15 consecutive years since its initial public offering back in 1995. Although it would be a great stock to own, CNR is close to it's 52 week high and even with a20% increase it's yielding close to 1.91%. CN is a solid company and if there's another dip coming, I would love to pick up some shares closer to $50.
Do any of you own CNR?
Watchlist For February 3rd, 2012
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9 comments:
I also checked CNR today,... the price is way too high and don't think it will be close to $50, as the lowest in 52 weeks was $52.76...
BTW, what do you think about BA (Bell Aliant)? Company has pretty good numbers.... yes, they reduce yield from 10% to about 7.5%, but this is because they converted to corporation....
Would love to own it...but it is very very expensive right now...besides they had a 14% decline in business last year...so...will keep it on my horizon
I have some CNR. With this increase my yield on cost is 2.3% - not the greatest but still a good steady stock.
I also have some BA - I've had about 2 yrs of 10%+ returns, I'm still happy with the new 7% rate. Because I've reinvested by dividends I'm getting over 8% yield on cost. I'm planning to keep it but do not expect to see any dividend increases for a long time.
I hold 18.3116 shares in my account at the Canadian Shareowner Investments. The nice thing about this account is that it allows you to hold fractional shares. The dividends are automatically reinvested each quarter also in fractional shares and at no commission cost. For the companies that I have decided to buy, you can buy on a set schedule with smaller amounts of money. That way there is no worrying about timing of purchases etc. Timing purchases is a futile game and I pay no attention to it because I am not establishing the whole position at once. I do it gradually over many months or even years.
I like all the money at work as soon as it is committed to my investment program and I also don't have tiny bits of dividends sitting idle.
cntrydad , before they converted to be corporation they were increasing dividend, I hope that they at least won't reduce them
Gibor:
I meant closer to $50 as apposed to $67. I own BCE but Bell Aliant would be a good buy.
Anonymous:
Yes I too am waiting for a price dip.
Cntrydad:
I stayed away from income trusts because the dividends are not stable. I am jealous of your CNR holding though!
Brian: DRIPs are very efficient. I will set some up in the future, but for now I like pooling them and buying at fair prices.
For those of you who haven't noticed, MCD yesterday increased their dividend by 0.61 per share. They also are in quite the dip, and the dollar is at parity. Keep your eye out on it.
I think the directors just declared their quarterly dividend of $0.61, otherwise that stock would increase real quick!
Good post. I want to own some railroads at some point over the next few years.
Fortis is my next buy though, starting my DRIP with it in 2011.
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