Is NYSE:CNI suited for dividend investing?

Unearth the potential of CANADIAN NATL RAILWAY CO (NYSE:CNI) as a dividend stock recommended by our stock screening tool. NYSE:CNI maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Understanding NYSE:CNI's Dividend Score

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:CNI has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 1.61, CNI pays a better dividend. On top of this CNI pays more dividend than 86.49% of the companies listed in the same industry.
• On average, the dividend of CNI grows each year by 11.66%, which is quite nice.
• CNI has paid a dividend for at least 10 years, which is a reliable track record.
• CNI has not decreased their dividend for at least 10 years, which is a reliable track record.
• CNI pays out 36.82% of its income as dividend. This is a sustainable payout ratio.

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:CNI has earned a 5 out of 10:

• An Altman-Z score of 3.29 indicates that CNI is not in any danger for bankruptcy at the moment.
• CNI's Altman-Z score of 3.29 is fine compared to the rest of the industry. CNI outperforms 67.57% of its industry peers.
• CNI has a Debt to FCF ratio of 4.89. This is amongst the best in the industry. CNI outperforms 81.08% of its industry peers.

How do we evaluate the Profitability for NYSE:CNI?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CNI has earned a 9 out of 10:

• CNI's Return On Assets of 10.68% is amongst the best of the industry. CNI outperforms 91.89% of its industry peers.
• Looking at the Return On Equity, with a value of 27.96%, CNI belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
• CNI has a Return On Invested Capital of 10.84%. This is amongst the best in the industry. CNI outperforms 86.49% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for CNI is above the industry average of 7.73%.
• The last Return On Invested Capital (10.84%) for CNI is above the 3 year average (10.80%), which is a sign of increasing profitability.
• CNI has a better Profit Margin (33.43%) than 100.00% of its industry peers.
• In the last couple of years the Profit Margin of CNI has grown nicely.
• With an excellent Operating Margin value of 39.20%, CNI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 74.14%, CNI belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of CNI for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.