10 Best Canadian Dividend Stocks to Buy For Income Investors

3. Canadian National Railway Company (NYSE:CNI)

Number of Hedge Fund Holders: 44

Canadian National Railway Company (NYSE:CNI) is a Canadian rail freight company that transports goods worth billions of dollars annually. In the past 12 months, the stock is down by nearly 20% as Canadian railways have encountered a tough year, grappling with labor disputes, strikes leading to port closures, and disruptions from adverse weather and wildfires. Despite these challenges, the company has benefited from long-term economic growth, serving as a vital part of the economy. Over the past two decades, Canadian National Railway (CNR) has seen its stock rise by over 605%, highlighting the company’s growth and operational efficiencies. This success has been bolstered by a consistent and increasing dividend.

Canadian National Railway Company (NYSE:CNI) reported strong earnings in the third quarter of 2024. The company’s scheduled operating plan showcased its resilience during the quarter, enabling swift adaptation to challenges from wildfires and extended labor disputes. Operations rebounded quickly, and the railroad is now performing efficiently. The company posted revenue of C$4.1 billion, showing a 3% growth from the same period last year.

Canadian National Railway Company (NYSE:CNI)’s cash position also remained stable, which is significant for income investors. The company’s operating cash flow was C$1.77 billion, up from C$1.5 billion in the same quarter last year. Its free cash flow also grew C$584 million, from C$581 million in the prior year period. Due to this cash generation, the company was able to grow its dividend payouts for 28 consecutive years. The company offers a quarterly dividend of C$0.845 per share and has a dividend yield of 2.39%, as of January 10.

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 44 funds held stakes in Canadian National Railway Company (NYSE:CNI), up from 42 in the preceding quarter. These stakes have a total value of more than $11.7 billion. Bill & Melinda Gates Foundation Trust owned the largest stake in the company, worth over $6.4 billion.