Canadian Pacific Kansas City Limited (NYSE:CP) Plans Quarterly Dividend of $0.17

Key Points

• Canadian Pacific Kansas City Limited announced a quarterly dividend increase to $0.17 per share, up from the previous $0.16, effective for shareholders of record on September 26th.
• The company's dividend payout ratio is a healthy 17.2%, indicating strong earnings coverage for the dividend payouts.
• CP stock traded at $73.49, with analysts providing mixed ratings and an average price target of $92.30 for the future.

Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP declared a quarterly dividend on Thursday, July 31st, Wall Street Journal reports. Shareholders of record on Friday, September 26th will be paid a dividend of 0.1651 per share by the transportation company on Monday, October 27th. This represents a c) dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Friday, September 26th. This is a 0.4% increase from Canadian Pacific Kansas City's previous quarterly dividend of $0.16.

Canadian Pacific Kansas City has a payout ratio of 17.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Canadian Pacific Kansas City to earn $3.93 per share next year, which means the company should continue to be able to cover its $0.56 annual dividend with an expected future payout ratio of 14.2%.

Canadian Pacific Kansas City Price Performance

NYSE CP traded down $0.66 on Friday, reaching $72.89. 3,538,129 shares of the stock traded hands, compared to its average volume of 2,920,402. The firm's fifty day simple moving average is $79.74 and its 200 day simple moving average is $76.92. The company has a quick ratio of 0.70, a current ratio of 0.81 and a debt-to-equity ratio of 0.43. The company has a market cap of $66.91 billion, a price-to-earnings ratio of 22.71, a P/E/G ratio of 2.06 and a beta of 1.06. Canadian Pacific Kansas City has a 12 month low of $66.49 and a 12 month high of $87.72.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last issued its quarterly earnings results on Wednesday, April 30th. The transportation company reported $0.74 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.74. The firm had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.56 billion. Canadian Pacific Kansas City had a return on equity of 8.68% and a net margin of 28.05%. The firm's quarterly revenue was up 8.0% on a year-over-year basis. During the same period last year, the company posted $0.93 EPS. As a group, research analysts predict that Canadian Pacific Kansas City will post 3.42 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Scotiabank reaffirmed an "outperform" rating on shares of Canadian Pacific Kansas City in a research note on Thursday, July 10th. Jefferies Financial Group decreased their price target on Canadian Pacific Kansas City from $100.00 to $90.00 and set a "buy" rating for the company in a research note on Wednesday, April 9th. Wall Street Zen lowered Canadian Pacific Kansas City from a "hold" rating to a "sell" rating in a research note on Saturday, June 14th. Susquehanna reissued a "positive" rating and set a $94.00 price objective (up from $90.00) on shares of Canadian Pacific Kansas City in a research note on Tuesday, June 24th. Finally, Stifel Nicolaus reduced their price objective on Canadian Pacific Kansas City from $85.00 to $79.00 and set a "hold" rating for the company in a research note on Monday, April 14th. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $92.30.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers.