CN dividend: history, coverage and yield
CN's indicated annual dividend rate is C$3.66, and 2025 dividends were covered by free cash flow. CN's shareholder payments also included buybacks, which were more flexible than dividends.
How much does CN pay in dividends?
The dividend starts from an indicated C$3.66 annual rate after the January increase. The base case reaches C$3.70 in 2027, C$3.85 in 2028 and C$4.00 in 2029, slower than the five-year dividend record because capex and debt are rising. The bear case holds C$3.66 flat, while the bull reaches C$3.75, C$4.05 and C$4.40 as cash conversion improves. Dividends were covered by 2025 free cash flow, supporting increases but not an aggressive path.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 7.57 | 7.01 | 8.53 | 7.44 | 6.90 |
| Free cash flow per share | 5.43 | 4.92 | 5.73 | 5.68 | 5.65 |
| − Dividends paid, per share | 3.54 | 3.37 | 3.14 | 2.91 | 2.45 |
| − Share buybacks, per share | 3.30 | 4.10 | 6.90 | 6.84 | 2.23 |
| = FCF not paid out, per share | 0.97 | ||||
| = Paid out more than FCF, per share | 1.41 | 2.55 | 4.32 | 4.07 |
Does CN's cash cover its dividend?
Across 2021–2025, shareholder payments exceeded internally generated free cash flow. Dividends formed the recurring commitment; buybacks, which reduce the number of shares outstanding, were the more flexible outlet. Paying more than free cash flow is not automatically reckless, because a company can use cash reserves or borrow. But it means management must show that the shares bought were a better investment than debt repayment or network projects.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 3,389 | 3,119 | 3,776 | 3,910 | 4,012 |
| − Dividends paid | 2,208 | 2,138 | 2,071 | 2,004 | 1,740 |
| − Share buybacks | 2,059 | 2,600 | 4,551 | 4,709 | 1,582 |
| = Free cash flow not paid out | 690 | ||||
| = Paid out more than the free cash flow | 878 | 1,619 | 2,846 | 2,803 | |
| Paid out, % of free cash flow | 125.9% | 151.9% | 175.4% | 171.7% | 82.8% |
What is CN's dividend yield today?
A P/E ratio says how many dollars investors pay for each dollar of earnings. A forward P/E uses expected earnings, so it falls when profits are expected to rise. At the current price, the forward multiple implies roughly C$8.99 of earnings per share. That is accounting profit, not cash: CN must still maintain the railway, repay debt and decide what to distribute.
| Today (Oct 11, 2026) | |
|---|---|
| Share price | 168.06 |
| Market value (calculated) | 101,525.05 |
| P/E, last 12 months (calculated) | 21.6x |
| Dividend yield (calculated) | 2.2% |