Sunday, November 29, 2015

Retirees: 2 Solid Income Picks for 2016 | The Motley Fool Canada

Retirees: 2 Solid Income Picks for 2016 | The Motley Fool Canada: "Canadian National Railway Company (TSX:CNR)(NYSE:CNI) is one of those stocks you can simply buy and forget about for decades. The company has a strong history of revenue and earnings growth, and the good times just keep chugging along.

The great thing about Canadian National Railway is its diverse revenue base. The company is literally the backbone of the economy in the U.S. and Canada, and weakness in one sector tends to be balanced out by strength in others. For example, the rout in oil prices has hurt energy-related shipments, but the resulting drop in the Canadian dollar is boosting demand for the transportation of forestry and automotive products.

Canadian National Railway pays a quarterly dividend of $0.3125 per share that yields 1.6%. Investors shouldn’t be put off by the low yield as the distribution increases tend to be substantial. The company raised the dividend by 25% earlier this year and is planning to boost its payout ratio in the future."



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