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Should You Buy Canadian Pacific Railway Limited (TSE:CP) Based On These Aspects?

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Canadian Pacific Railway Limited (TSE:CP) due to its excellent fundamentals in more than one area. CP is a well-regarded dividend-paying company with a a great track record of delivering benchmark-beating performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Canadian Pacific Railway here.

Solid track record average dividend payer

CP delivered a bottom-line expansion of 55.84% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 36.09%, which is an optimistic signal for the future.

TSX:CP Income Statement June 25th 18
TSX:CP Income Statement June 25th 18

For those seeking income streams from their portfolio, CP is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.04%.

TSX:CP Historical Dividend Yield June 25th 18
TSX:CP Historical Dividend Yield June 25th 18

Next Steps:

For Canadian Pacific Railway, there are three pertinent aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for CP’s future growth? Take a look at our free research report of analyst consensus for CP’s outlook.

  2. Financial Health: Is CP’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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