10 Best Railroad Stocks To Buy Now

2. Canadian Pacific Kansas City Limited (NYSE:CP)

Number of Hedge Fund Holders: 74

Canadian Pacific Kansas City Limited (NYSE:CP) operates a transcontinental freight railway across Canada, the United States, and Mexico, transporting grains, coal, chemicals, automotive goods, and retail shipments. On February 27, the company announced that the Toronto Stock Exchange has authorized its plan to repurchase up to 37.35 million shares, which makes up around 4% of the company’s outstanding stock. The share repurchase program will be effective from March 3, 2025, to March 2, 2026.

In Q4, Canadian Pacific Kansas City Limited (NYSE:CP) experienced a 3% year-over-year revenue increase to $3.9 billion, with volumes up 2% and core EPS climbing 9% to $1.29. For the full year, the company generated $5.3 billion in operating cash flow and focused on paying down debt with its free cash flow after dividends. On January 29, 2025, it declared a quarterly dividend of $0.19 per share. The dividend will be distributed on April 28, 2025, to shareholders on record as of March 28.

According to Insider Monkey’s fourth quarter database, 74 hedge funds were bullish on Canadian Pacific Kansas City Limited (NYSE:CP), compared to 52 funds in the preceding quarter. Chris Hohn’s TCI Fund Management was the biggest stakeholder of the company, with nearly 55 million shares worth $4 billion.