Canadian National Railway (CNI) is undoubtedly The Best North American Railroad. The railway network of 20,000 miles connects 3 coasts (Prince Rupert on Pacific, Halifax in Atlantic and New Orleans and Mobile in Gulf coast) to major North American markets including many major cities in Canada (Vancouver, Calygry, Edmonton, Toronto, Montreal, Halifax) and Central United States (Chicago, Detroit, Omaha, St. Louis, Memphis) and Southern United States (New Orleans, Mobile, Baton Rouge).
CNI has one of the best management teams and excellent focus on customer service, growth initiatives leading to top line growth and the industry leading Operation Ratio of less than 60%. CNI also has the best diversified business by business sector and geography. CNI has generated 14+% annual return since 1995 IPO. CNI returns nearly 85-90% of generated cash to shareholders with 30-35% as dividend and remaining 55-60% in the form of buybacks. CNI can grow earnings and dividend at 10% per year growing forward driven by 3% organic growth in revenue, 3% price increases and 3% growth due to buybacks.
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