Boeing, Canadian Pacific Railway & Canadian National Railway: 3 Dividend-Paying Industrial Stocks - Kalkine Media

December 03, 2020 08:40 AM EST | By Kunal Sawhney
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Summary

  • Boeing’s Max 737 flight to resume its operations by the end of December 2020.
  • Boeing pays a quarterly cash dividend of US$ 2.055 per stock.
  • CP railway stocks are up 25 per cent year-to-date (YTD). It pays a quarterly cash dividend of C$ 0.95 per stock.
  • Canadian National Railway distributed quarterly cash dividend of C$ 0.575 per stock. Stocks of CNR are trading nearly 17 per cent up YTD.

Stocks of large-cap industrial firms have traditionally offered good quarterly cash dividends and stable returns on equity. However, following the COVID-led market meltdown, many industrial stocks sliced their dividends, some putting a stop to it all together.

However, there are a handful stocks that managed to hold the fort, providing periodic returns to investors even in difficult market situations. In this article, we will delve into the three large-cap dividend-paying industrial stocks: The Boeing Company (BA:US or NYSE: BA), Canadian Pacific Railway Limited (TSX: CP), and Canadian National Railway Company (TSX: CNR).

Boeing stocks have been buzzing in the markets because of the scheduled return of its Max 737 flight on the runway by the end of December. The Max flight was banned due to a series of fatal crashes. The U.S. aviation regulator allowed the aircraft to operate after the company changed its design and displayed safer guidance in the last month.

Meanwhile, Canadian Pacific Railway concluded its best-ever November for shipping Canadian grain and grain goods, with 2.96 million metric tonnes (MMT) freight.

 

The Boeing Company (BA:US or NYSE: BA)

Current Stock Price: US$ 223.85

 

The jet stock has declined over 31 per cent year-to-date (YTD). However, the stocks have gained an astonishing 136 per cent growth since the March market-crash. In the last three months, the stock has surged by nearly 33 per cent.

The aircraft manufacturer holds a current dividend yield of 3.77 per cent. Its distributed cash dividend of US$ 2.055 for the ongoing quarter. The five-year average dividend growth stands at 12.62 per cent.

Bullish investors have pushed its 10-day average stock trading volume to 31.46 million units.

Its current market capitalization stands at US$ 126.36 billion. Its price-to-cashflow (P/CF) ratio is 68.40. The stock offers a positive return on equity of 56.01 per cent, as per data available on the TMX portal.

Boeing has recently entered a partnership with global investment firm Castlelake, which has owns aircrafts and handles jet servicing. Castlelake will finance up to US$ 5 billion of capital for new Boeing commercial aircraft supplies via senior secured funding, mezzanine financing, and high loan-to-value finance agreements.

In the third quarter of 2020, Boeing registered revenue of US$ 14.1 billion and GAAP loss per stock of US$ 0.79, impacted by the COVID-19 pandemic crisis and the 737 MAX ban.

The jet producer recorded a total backlog of US$ 393 billion, comprising more than 4,300 commercial aircraft.

 

Canadian Pacific Railway Limited (TSX: CP)

Current Stock Price: C$ 415.07

 

The Canadian railway company offers a current dividend yield of 0.916 per cent and has declared a quarterly cash dividend of C$ 0.95. Its three-year average dividend growth is 15.87 per cent and the five-year dividend growth is 19.04 per cent.

CP stocks have increased by nearly 8 per cent in the last three months. Its scrips indicate over 15 per cent growth in the last six months. The railway stock has increased by 25 per cent YTD. Its market cap stands at almost C$ 55.74 billion.

The stock’s profit-to-earnings (P/E) ratio is 24.70. The CP stock delivers a positive ROE of 31.10 per cent and a good return on assets (ROA) of 9.93 per cent. Its price-to-book (P/B) ratio is 7.366, the P/CF ratio is 20, and earnings-per-share is C$ 16.92, as per data on the TMX portal.

The Canadian transportation giant has been placed among TMX’s top price performer stocks that have the largest gains across the TSX and TSXV in the last 30 days.

In the third quarter of 2020, the industrial company announced revenues of C$ 1.86 billion, down by 6 per cent from $1.98 billion in Q3 2019.

The company is expecting capital expenditures of C$ 1.6 billion in 2020.

 

Canadian National Railway Company (TSX: CNR)

Current Stock Price: C$ 137.56

 

CNR stocks have grown nearly 17 per cent YTD. Its scrips show over 43 per cent recovery from the March lows.

The national railway stock holds a current dividend yield of 1.672 per cent. It has announced of C$ 0.575 quarterly cash dividend in the fourth quarter. The three-year average dividend growth stands at 11.02 per cent, and the five-year dividend growth is 12.53 per cent.

CNR stocks grew by 12 per cent in the last six months.

The transport stock’s ROE is 18.01 per cent and ROA is 7.63 per cent. Its P/B ratio is 5.059, P/CF ratio is 17.30, P/E ratio is 28.70 and the debt to equity ratio is 0.73, as per data on the TMX portal.

Its current market cap is approximately C$ 99.88 billion.

CNR stock made it to TMX’s top industrial stocks that have outperformed their peers across TSX and TSXV in the past 10 days.

In the third quarter of 2020, CNR’s revenues were C$ 3,409 million, down 11 per cent year-over-year led by lower volumes across commodities due to the COVID-19 pandemic.

However, the company recorded that its operating expenses for Q3 2020 were down by eight per cent to C$ 2,043 million, guided by lower fuel and workforce costs.


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