Canadian Pacific Kansas City sets quarterly dividend at $0.19/share
CALGARY - Canadian Pacific (NYSE:CP) Kansas City Limited (TSX: CP) (NYSE: CP), known as CPKC, has announced a quarterly dividend of $0.19 per share for its Common Shares. This dividend is scheduled to be paid on April 28, 2025, to shareholders who are on record as of March 28, 2025. The company has maintained dividend payments for 24 consecutive years, demonstrating strong financial stability. According to InvestingPro analysis, CPKC is currently trading above its Fair Value. CPKC has specified that this dividend is considered "eligible" under the Income Tax Act in Canada and corresponding provincial or territorial legislation.
CPKC operates as a unique railway enterprise, boasting a single-line network that spans across Canada, the United States, and Mexico. Its reach extends to key ports along the Vancouver coast, Atlantic Canada, the Gulf of Mexico, and as far as Lázaro Cárdenas in Mexico. With impressive gross profit margins of 53.6% and revenue growth of 28.5% in the last twelve months, CPKC has established itself as a prominent player in the Ground Transportation industry. The company's approximately 20,000 route miles of track and workforce of 20,000 railroaders enable it to offer extensive rail service options and connectivity to major markets throughout North America.
In addition to its rail services, CPKC is actively engaged in expanding its offerings to meet the evolving needs of its customers. It provides a broad range of freight transportation services, logistics solutions, and supply chain management expertise. The company's growth strategy is closely aligned with customer demands, ensuring that it remains a competitive player in the freight transportation and logistics industry.
The announcement of the dividend reflects CPKC's commitment to delivering shareholder value and is a part of the company's regular financial practices. Details about CPKC and its services can be found on the company's website.
This dividend declaration by CPKC is based on a press release statement and is part of the company's financial reporting to its shareholders.
In other recent news, Canadian Pacific Kansas City Limited (CPKC) has made significant strides in its operations. The company has reached a tentative four-year labor agreement with the union Unifor, which represents approximately 1,200 of its Canadian employees. This agreement, if ratified, will affect various workers, including mechanics, laborers, diesel service attendants, and mechanical support staff.
In terms of financial performance, CPKC reported a 6% increase in revenue to $3.5 billion and an 8% rise in earnings per share to $0.99 in the third quarter. These figures indicate a strong operational resilience, even in the face of challenges such as a derailment and labor strike.
Several analyst firms have also updated their ratings and outlooks for CPKC. Wolfe Research upgraded CPKC's stock rating to Outperform, following the company's acquisition of Kansas City Southern (NYSE:KSU). Jefferies maintained its Buy rating, pointing out the potential for share repurchases in 2025, while RBC Capital reduced its price target but upheld an Outperform rating. However, Stephens revised its price target for CPKC to $81, maintaining an Equal Weight rating due to uncertainties.
These recent developments highlight CPKC's commitment to its workforce, operational efficiency, and financial growth. As the company continues to navigate through its industry, these updates provide valuable insights for investors monitoring CPKC's progress.
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