CP Rail raises quarterly dividend 27.5 per cent after strong first quarter

BUSINESS

CP Rail raises quarterly dividend 27.5 per cent after strong first quarter

The Canadian Press Published Monday, May 6, 2019 7:10PM EDT

Canadian Pacific Rail locomotives sit idle at the company's Port Coquitlam yard east of Vancouver on May 23, 2012. (The Canadian Press/Darryl Dyck)

Text:

CALGARY -- Canadian Pacific Railway Ltd. has boosted its quarterly dividend by 27.5 per cent.

The Calgary-based railway says the payout will increase to 83 cents from 65 cents and will be payable July 29 to shareholders of record June 28.

The increase comes nearly two weeks after CP Rail's profits surged 25 per cent during the winter quarter despite lower volumes caused by frigid temperatures and heavy snowfall.

The railway has increased its dividend for a fourth straight year, representing a 137 per cent increase since 2014.

It has paid $1.47 billion in dividends over this time and returned $9.2 billion to shareholders.

CEO Keith Creel says the significant increase represents its outstanding performance and commitment to creating long-term value for shareholders.

"CP remains well-positioned for sustainable, profitable growth and providing balanced shareholder returns is an important part of our success," Creel said in a statement.

Companies in this story: (TSX:CP).