Canadian National Railway (CNI) reported their latest quarterly results this past week and hiked their dividend by 10%. Any dividend hike, especially in these 'tough economic times' usually gets my attention. Let's have a look at the quarter for the economically sensitive railway.
- Hiked dividend by 10%
- Earnings on a comparable basis were up about 24%
- Revenues were up 13%
- Results beat analyst expectations
- Falling $CAD caused US earnings to inflate
- Lagging fuel surcharges helped, given lower fuel costs
- Volume was down 9.8%
- Much of the earnings gain was attributed to the falling $CAD and the lagging fuel surcharges
Disclosure: I own competitor CP Rail (CP) within my non-registered account.