Canadian National Railway Company (CNI) board approved a 3% increase in the quarterly cash dividend, effective for Q1 2026. This marks the 30th consecutive year of dividend increases. The new quarterly payout will be C$0.9150 per share. The board also authorized a new Normal Course Issuer Bid (NCIB) to repurchase up to 24 million common shares (approximately 3.9% of outstanding stock) starting February 4, 2026.
Analyst reactions were mixed following the “RTM flattish” guidance. Citi maintained a “Buy” rating with a $119.00 price target, citing long-term productivity. Conversely, Barclays maintained a “Hold” with a $101.00 target, highlighting that volume growth remains the missing piece for a valuation re-rating. Morningstar noted the dividend hike was more conservative than the prior year’s 7% increase, reflecting a “tighter” capital allocation environment.