Cnr, My favorite rail – New Buy

Cnr

Cnr, My favorite rail – New Buy

Hey everyone, hope your all enjoying the sunny days. I sure am, Got the sweet farmer tan to prove it!

Recently the government topped up our Resp. (ie matched our contributions by 20%)I also created a family resp and added our daughter to the account. This also allowed me to throw more money into the resp since our son’s is now maxed until next year. Honestly if you have a kid in Canada and don’t have a resp, why not? 20% match! Take it and go.

So we had 1500 cash in there ready to be deployed. In our resp account I hold 3 companies currently. CNR, Enbridge and Canadian Utilities. I was really debating starting a new position in Bell on its recent pullback, but in this current rising interest environment I thought Id stick with the stock that would be least affected by rates.

That being Cnr, I’m not going to get into it that much as I have written about them a couple times now. Super wide moat company that is about to fire on all cylinder’s. They have been buying a bunch of new cars and locomotive’s to meet the demand. They have now caught up on all the wheat shipment delays. Unfortunately this has also made the stock come back up. Cnr was also my smallest position of the 3.




The Buy

I figured it was time to throw down my stack before the train keep’s going higher. So we added 15 new shares at just over $100 a share. It’s already at 102 now. This purchase adds $27.30 to our forward dividends and finally pushes CNR over the $100 a year in dividends thresh hold.

Railroad’s don’t seem to have much competition and I really don’t see anything in the future. Tesla trucks maybe might change things a bit, but for really large loads nothing beats rails.

Conclusion

Short post, to say the least. I feel CNR is a great stock that should continue to do well in the future. Unfortunately the dividend isn’t a monster but remember they have raised it since they became public, 22 years ago. Keep stacking those div’s.

What have you been buying?

Cheers

10 Responses

  1. Hi Rob, That is a beautiful picture. With the economy hopping transports are a good place to be. I own Norfolk Southern and UPS in that space. Tom
    Tom @ Dividends Diversify recently posted…The New Millionaires | Concluding thoughts | Part 6My Profile

    • Rob says:

      Hey Tom

      Thanks its not mine though. Google search.

      I agree its a good place to be.
      Dam i have missed a bunch of your millionaire series. Time to catch up.
      Cheers

  2. May says:

    CNR is a good stock. I was watching CNR and was not able to pull the trigger. Now it’s up so much from the low and I am not sure if I still should buy. Well, I guess I will just keep CNR in my RRSP for now.

    I used coach potato approach for my kids’ resp using TD e series funds. For me, individual stocks look like too risky as my oldest one has only 8 years to go to university. You kids are still young and you have enough time to grow the money there.

    • Rob says:

      Hey May

      I bought some when it was lower but didnt back up the truck unforetunately. Always curious why people hold canadian stocks in rrsp accounts. With you and your spouse you can have 110,000 in canadian stocks tax free.

      They e series seems like a great way to go. I got about 14 years before my first kid will need any funds, so like you said times on my side

      Cheers May

      • May says:

        I have considered to buy more US stocks in RRSP account. But Canadian dollar is so low nowadays.

        • Rob says:

          Yeah true. I try to ignore that to a certain extent. The us market has dominated the tsx in returns. So it makes up for the currency loss imo.

  3. Leo T. Ly says:

    I currently have a modest position in CNR. If it pulls back, I will consider buying more. If it continues to go up, I am happy too as I am already an owner. I think if oil continues to rise, so will their stock price.
    Leo T. Ly recently posted…Can You Achieve Financial Success Without A Budget?My Profile

    • Rob says:

      Nice Leo

      Like you I am happy with my current position but if it presents another good drop, maybe ill have to buy more =)

      Cheers

  4. cris says:

    This is a good company for long term… was better to get it in low nineties but if in 15 years will double or triple won’t make too much difference.

    Regarding the CAD/USD rate, if the rate goes back to 0.8 or higher then is a good exchange rate as will be better then historically rate…

    • Rob says:

      Hey Cris

      I bought some around 94 before too just didnt have enough cash to back the truck.

      Good point about currency rates.
      Cheers

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