Tuesday, January 22, 2013

Dividend Increase: CNI

Canadian National Railway (CNI) is increasing its quarterly dividend by 14.7%, from C$0.375 to C$0.43 per share, putting the company on track for its 17th consecutive year of dividend growth (press release). Given that I own 20 shares of CNI, my quarterly dividend increases from $7.50 to $8.60 (before 15% foreign tax withholding), which will add an extra $4.40 to my annual dividend income. This dividend increase also boosts my yield on cost to 2.28%. Thus far this year, there have been dividend increases for 8 of the 26 dividend growth stocks in my portfolio.
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8 comments:

  1. Passive Income PursuitJanuary 23, 2013 at 9:06 AM

    Is there any site in particular that you use to get updates on increases? I don't really want to set it up so google emails me articles about the companies I'm either invested in or thinking about because I get way too many emails as it is. That's a nice increase by the way.

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    1. Dividend Growth MachineJanuary 23, 2013 at 9:16 AM

      PIP: I wish there was a service that could be tailored to provide updates on dividend increases only. In the Excel file for my portfolio I have a column beside my dividend table that indicates when the last increase was announced (as determined from the company's investor relations website). I monitor for press releases around that date. Seeking Alpha does a pretty good job of reporting dividend changes, although they occasionally miss a few announcements.

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  2. Compounding IncomeJanuary 23, 2013 at 4:44 PM

    Wow that's a nice raise. I see NSC decided to keep the same rate, I was half expecting them to do an increase. Not a cause for concern, but slightly disappointing.

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    1. Dividend Growth MachineJanuary 23, 2013 at 5:18 PM

      CI: I'm pretty happy with the dividend increase from CNI. I also noticed that NSC maintained their quarterly dividend, but I anticipated that possibility in light of last year's operating results. However, I still expect an increase to be announced in late July or early August.

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  3. Brett @ wstreetstocksJanuary 24, 2013 at 7:05 PM

    That's a nice raise. What's your opinion of Norfolk Southern (NSC). They've also consistently raised their dividend, although CNI looks like a great stock.

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    1. Dividend Growth MachineJanuary 24, 2013 at 7:45 PM

      Brett: I'm also a fan of NSC -- it's my largest position. :) Check my Transactions page for links to posts about it last year.

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  4. DividendApril 18, 2013 at 5:00 AM

    You really have avery nice blog,it's the first time to be here but it won't be the last untill then keep blogging..goodluck!

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