Is NYSE:CNI a Good Fit for Dividend Investing?

Our stock screening tool has identified CANADIAN NATL RAILWAY CO (NYSE:CNI) as a strong dividend contender with robust fundamentals. NYSE:CNI exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Exploring NYSE:CNI's Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:CNI has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 1.52, CNI pays a better dividend. On top of this CNI pays more dividend than 89.47% of the companies listed in the same industry.
• On average, the dividend of CNI grows each year by 12.15%, which is quite nice.
• CNI has been paying a dividend for at least 10 years, so it has a reliable track record.
• CNI has not decreased their dividend for at least 10 years, which is a reliable track record.
• 38.73% of the earnings are spent on dividend by CNI. This is a low number and sustainable payout ratio.

How do we evaluate the Health for NYSE:CNI?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:CNI, the assigned 6 reflects its health status:

• An Altman-Z score of 3.19 indicates that CNI is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.19, CNI is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
• CNI has a debt to FCF ratio of 3.83. This is a good value and a sign of high solvency as CNI would need 3.83 years to pay back of all of its debts.
• CNI has a Debt to FCF ratio of 3.83. This is amongst the best in the industry. CNI outperforms 81.58% of its industry peers.
• CNI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Exploring NYSE:CNI's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CNI, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 10.34%, CNI is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
• CNI's Return On Equity of 25.80% is amongst the best of the industry. CNI outperforms 81.58% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 11.22%, CNI is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
• The last Return On Invested Capital (11.22%) for CNI is above the 3 year average (10.00%), which is a sign of increasing profitability.
• The Profit Margin of CNI (30.20%) is better than 97.37% of its industry peers.
• CNI has a Operating Margin of 40.78%. This is amongst the best in the industry. CNI outperforms 100.00% of its industry peers.
• CNI's Gross Margin of 73.47% is amongst the best of the industry. CNI outperforms 81.58% of its industry peers.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.