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Why is this Dividend-Growth Stock ideal for your TFSA?


Dividend can be a great way to create income. Over time, dividends payments can have huge amounts of capital, in particular, companies are carefully choosing to increase dividends. Dividend-growth companies TFSA accounts are also excellent, which are the most suitable for the long-term investment strategy.

They make these criteria Canadian National Railway (TSX: CNR) (NYSE: CNI) TSFA is one of the largest TSX investments investments. As Canada's largest railway company, CNR has the largest market share in an almost impersonal industry. CNR pays dividends every year since 1996 and, in general, dividends are paid year after year.

In the last four years, CNR has made its dividends by 33%. At present, the company has a 4.82% dividend yield, with a 23% payment record, looking for income-oriented investors and Dividend growth rates, including in TFSA. Consider the two reasons why CNR investment is a good option.

CNR underestimated

There are good reasons to emphasize CNR today. The company's current P / E is 12.85, which is below the average TSX. The CNR stock is also cheaper than the main Canadian competitor, Canadian Pacific Railway.

It is always a good idea to buy shares of the company at a lower price than the intrinsic values.

CNR works like a well-oiled machine

The latest CNR profits reports were encouraging. The company shares revenue and profits, profits and profits. CNR also generates profits efficiently. Company equity tax increased by 13% in the last five years, and the net profit margin increased by 16%.

CNR was always one of the most efficient railway companies, the company spent several years at the beginning of the year. The increase in demand was concluding that the CNR network was being loaded due to the fact that there were several customers and the price of its price dropped.

The CNR committed to address the issue, however, and budget spending increased to $ 3,200 million, which was the record of the company. CNR also hired 400 train managers in the first quarter alone.

CNR's efforts to recover the right way have been rewarded. The profits of the second quarter of the company were excellent, and its stock prices recovered from the first quarter's decline. CNR did not diminish the volume of the latest market, as the company's signals promoted as a CNR to respond appropriately to the crisis.

Bottom line

The CNR has demonstrated the ability to continue to increase both profits and dividends, maintaining the unexpected rise and efficiency of demand at an optimum level. Nowadays, the company emphasizes that it is a good time to buy shares of the giant railway. TSFA investors will have to warn.

Fool's assistant Prosper Bakiny does not speak of business. David Gardner shares the Canadian National Railway. Motley Fool has shares in Canada's National Railway. Canadian National Railway It's a recommendation Stock consultant in Canada.

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