Cnr, My favorite rail – New Buy

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

Rob

Hey I’m Rob, creator of Passive Canadian Income.

In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.