Canadian Pacific Railway Limited (NYSE:CP) (TSE:CP) announced a quarterly dividend on Tuesday, July 18th, Wall Street Journal reports. Shareholders of record on Friday, September 29th will be paid a dividend of 0.4411 per share by the transportation company on Monday, October 30th. This represents a $1.76 annualized dividend and a yield of 1.13%. The ex-dividend date is Thursday, September 28th. This is a boost from Canadian Pacific Railway Limited’s previous quarterly dividend of $0.41.
Canadian Pacific Railway Limited has raised its dividend by an average of 7.9% annually over the last three years. Canadian Pacific Railway Limited has a payout ratio of 24.9% meaning its dividend is sufficiently covered by earnings. Research analysts expect Canadian Pacific Railway Limited to earn $10.25 per share next year, which means the company should continue to be able to cover its $2.25 annual dividend with an expected future payout ratio of 22.0%.
Shares of Canadian Pacific Railway Limited (NYSE CP) opened at 155.49 on Friday. Canadian Pacific Railway Limited has a 12 month low of $139.29 and a 12 month high of $167.52. The firm has a market capitalization of $22.71 billion, a P/E ratio of 17.58 and a beta of 1.09. The firm’s 50-day moving average price is $159.73 and its 200 day moving average price is $153.60.
A number of research firms have commented on CP. Cowen and Company restated a “buy” rating and issued a $172.00 price objective on shares of Canadian Pacific Railway Limited in a research note on Friday, July 28th. BidaskClub lowered shares of Canadian Pacific Railway Limited from a “hold” rating to a “sell” rating in a research note on Tuesday. Argus restated a “buy” rating and issued a $180.00 price objective (up from $165.00) on shares of Canadian Pacific Railway Limited in a research note on Tuesday, July 25th. Zacks Investment Research upgraded shares of Canadian Pacific Railway Limited from a “hold” rating to a “buy” rating and set a $181.00 price objective on the stock in a research note on Wednesday, July 12th. Finally, Credit Suisse Group restated an “outperform” rating and issued a $183.00 price objective (up from $178.00) on shares of Canadian Pacific Railway Limited in a research note on Thursday, July 13th. They noted that the move was a valuation call. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and twenty have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus target price of $187.37.
Canadian Pacific Railway Limited announced that its Board of Directors has authorized a share repurchase plan on Wednesday, May 10th that authorizes the company to repurchase 4,380,000 shares. This repurchase authorization authorizes the transportation company to purchase shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company’s board of directors believes its shares are undervalued.
About Canadian Pacific Railway Limited
Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The Company operates through rail transportation segment. The Company’s transports bulk commodities, merchandise freight, and intermodal traffic over a network of approximately 12,400 miles.
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