Canadian Pacific Kansas City Limited (NYSE:CP) Announces Quarterly Dividend of C$0.27

Key Points

• Canadian Pacific Kansas City declared a quarterly dividend of C$0.268 (C$0.66 annualized), payable July 27 to shareholders of record June 26, marking a 17.5% increase from the prior C$0.23 and implying a ~1.3% yield.
• The dividend appears sustainable: the company’s payout ratio is only 20.2% today and analysts project earnings of C$4.27 next year, which would lower the expected payout ratio to about 15.5%.
• CPKC recently missed quarterly EPS expectations ($0.95 vs. $0.99) with flat revenue of $2.85B, and the stock traded down ~1.9% to $85.13 (P/E ~26.4) on the news.

Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP announced a quarterly dividend on Tuesday, April 28th. Stockholders of record on Friday, June 26th will be given a dividend of 0.268 per share by the transportation company on Monday, July 27th. This represents a c) dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, June 26th. This is a 17.5% increase from Canadian Pacific Kansas City's previous quarterly dividend of $0.23.

Canadian Pacific Kansas City has decreased its dividend by an average of 0.0%per year over the last three years. Canadian Pacific Kansas City has a payout ratio of 20.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Canadian Pacific Kansas City to earn $4.27 per share next year, which means the company should continue to be able to cover its $0.66 annual dividend with an expected future payout ratio of 15.5%.

Canadian Pacific Kansas City Stock Down 1.9%

Shares of NYSE:CP traded down $1.62 during midday trading on Wednesday, reaching $85.13. The company's stock had a trading volume of 2,265,226 shares, compared to its average volume of 2,742,781. The firm has a 50 day moving average of $82.42 and a 200-day moving average of $77.01. The firm has a market capitalization of $75.96 billion, a P/E ratio of 26.41, a PEG ratio of 1.88 and a beta of 1.07. The company has a quick ratio of 0.41, a current ratio of 0.49 and a debt-to-equity ratio of 0.43. Canadian Pacific Kansas City has a 12-month low of $68.42 and a 12-month high of $89.42.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last released its earnings results on Wednesday, January 28th. The transportation company reported $0.95 earnings per share for the quarter, missing analysts' consensus estimates of $0.99 by ($0.04). The business had revenue of $2.85 billion during the quarter, compared to analysts' expectations of $2.85 billion. Canadian Pacific Kansas City had a return on equity of 8.91% and a net margin of 27.49%.The firm's quarterly revenue was up 1.3% compared to the same quarter last year. During the same period in the prior year, the company earned $1.29 earnings per share. On average, research analysts anticipate that Canadian Pacific Kansas City will post 3.74 earnings per share for the current year.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City (CPKC) is a North American Class I freight railroad formed through the combination of Canadian Pacific Railway and Kansas City Southern. The merged company operates an integrated rail network that spans Canada, the United States and Mexico, providing a single-line rail connection across all three countries. This transborder footprint is intended to streamline cross-border freight flows and provide shippers with direct rail access from Canadian and U.S. production centers to Mexican markets and ports.

CPKC's core business is freight transportation and related logistics services.

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