CN Rail board approves 3% dividend increase

Executive Summary

• Canadian National Railway Company (CN) announced a 3% increase in its quarterly dividend to 91.5 cents per share, effective for the first quarter of 2026.
• The Board of Directors approved a new Normal Course Issuer Bid (NCIB) to repurchase up to 24 million common shares (approximately 3.9% of outstanding shares) over a 12-month period.
• The new bid runs from February 4, 2026, to February 3, 2027, replacing the previous bid which expires on February 3, 2026.

Key Details

• Dividend Increase:
  • The 2026 dividend is increased by 3%.
  • First Quarter 2026 dividend is set at 91.5 cents per common share.
  • Payment date: March 31, 2026.
  • Record date: March 10, 2026.
• Share Repurchase Program (NCIB):
  • Authorization: Up to 24 million common shares for cancellation.
  • Percentage of Outstanding: Represents 3.9% of the 613,523,348 common shares issued and outstanding as of January 22, 2026.
  • Duration: February 4, 2026, to February 3, 2027.
  • Approval: Approved by the Toronto Stock Exchange (TSX) on January 29, 2026.
  • Daily Limit: Maximum of 395,423 common shares per day through TSX facilities.
  • Methods: Discretionary transactions, automatic repurchase plans, derivative-based programs, accelerated share repurchase transactions, or other methods permitted by law.
  • Exchanges: Toronto Stock Exchange (TSX), New York Stock Exchange (NYSE), and alternative trading systems in Canada and the US.
• Previous Bid Status:
  • The current NCIB (announced January 2025) for up to 20 million shares expires on February 3, 2026.
  • As of January 22, 2026, CN had repurchased 15,250,222 shares under the previous bid.
  • Weighted average purchase price: $134.44 per share.
  • Total capital returned under previous bid: $2.05 billion.
• Management Commentary:
  • CFO Ghislain Houle stated the actions reflect "strong cash flow" and a "disciplined approach to managing capital," focusing on investing in the business, returning capital to shareholders, and maintaining a strong balance sheet.

Notable Quotes

• "These actions reflect CN's strong cash flow and our disciplined approach to managing capital. We are investing in the business, returning capital to shareholders and maintaining a strong balance sheet to support long-term performance," stated Ghislain Houle, executive vice-president and chief financial officer of CN.