SKYW - Here's Why You Should Retain Canadian National Stock | Benzinga
Canadian National's (NYSE: CNI) efforts to reward its shareholders through dividends and buybacks despite the ongoing economic uncertainty are commendable. However, the freight market downturn is severely impacting the company's performance.
Factors Favoring CNI
Canadian National increased its quarterly dividend by 7% in January. This is the 28th consecutive year when the company announced a dividend hike.
CNI paid quarterly dividends of $0.85 per share, amounting to $540 million in the first quarter of 2024. As of Mar 31, 2024, the company repurchased 3.5 million common shares for $597 million under its current Normal Course Issuer Bid ("NCIB"). Canadian National may repurchase up to 32.0 million common shares between Feb 1, 2024 and Jan 31, 2025 under its current NCIB.
The stock prices of railroad operators tend to be stable, making CNI shares appealing to investors who prefer to avoid significant day-to-day volatility. With a beta of 0.90, CNI is less volatile than the overall market.
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