Topic: How To Invest

The Successful Investor Hotline – Friday, January 11, 2019

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $250.95, Toronto symbol CP, ships freight over a 22,000-kilometre rail network between Montreal and Vancouver, with links to hubs in the U.S. Midwest and Northeast. CP continues to benefit from a major restructuring effort launched in 2012 by the company’s former CEO, the late Hunter Harrison. That plan aims to improve efficiency by upgrading locomotives, improving tracks and adding software that optimizes trainloads and speeds. Mr. Harrison’s successor, Keith Creel, has continued these improvements. The company’s improving efficiency has also put it in a better position to handle rising demand from farmers for grain shipments, particularly in Canada. As well, the lack of new pipelines has spurred oil producers to ship more of their crude by rail. CP will likely earn $16.35 a share in 2019. The stock trades at a moderate 15.3 times that forecast. The $2.60 dividend yields 1.0%. OUR RECOMMENDATION: CP Rail is our #1 Conservative buy for 2019. CP Rail recent coverage Hotline for October 19, 2018 …