Is Canadian National Railway the Ultimate Dividend Stock in the Transportation Sector?

Canadian National Railway Company (NYSE:CNI) is included among the 11 Best Canadian Dividend Stocks to Buy Now.

It is considered a reliable blue-chip option for income-focused investors looking for stability. Its extensive rail network plays a key role in Canada’s supply chain, which strengthens its operations by supporting steady demand and contributing to consistent revenue and earnings growth. This dependable performance enables the company to continue growing its dividend over time.

In the first quarter of 2025, Canadian National Railway Company (NYSE:CNI) credited its strong quarterly performance to strict cost management and disciplined execution of its strategic plan, which helped offset the effects of challenging winter conditions. Looking ahead, management emphasized its commitment to staying agile and maintaining close collaboration with customers amid ongoing macroeconomic and geopolitical uncertainty.

Canadian National Railway Company (NYSE:CNI) reported revenue of $4.4 billion in Q1 2025, up from $4.2 billion in the same period last year. The company’s cash position also remained stable as the company reported a free cash flow of $626 million, up from $576 million in the prior-year period.

Canadian National Railway Company (NYSE:CNI) offers a quarterly dividend of C$0.8875 per share, which it grew by 5% in January this year. This was the company’s 29th consecutive year of dividend growth. The stock’s dividend yield on July 15 came in at 2.52%.

While we acknowledge the potential of CNI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.