A Philanthropic Activist Investor Maintains Stakes In 2 Canadian Railroad Stocks Paying Dividends

Zinger Key Points
  • In the third quarter, TCI Fund Management maintained its stake in Canadian National Railway of 36.6 million shares.
  • The hedge fund has also won the EuroHedge Award, which recognizes the best risk-adjusted performers in the European hedge fund industry. 
A Philanthropic Activist Investor Maintains Stakes In 2 Canadian Railroad Stocks Paying Dividends

British billionaire Chris Hohn is an activist investor who founded The Children's Investment (TCI) Fund Management in 2003. The fund manages The Children's Investment Master Fund.

TCI Fund Management is value-oriented and invests globally in businesses with sustainable competitive advantages, using activism to drive desired outcomes when neccessary.

The profits earned from the hedge fund are allocated to the TCI Fund Foundation, which is a registered charity in England and Wales that focuses on improving the lives of children living in poverty in developing countries.

The hedge fund has also won the EuroHedge Award, which recognizes the best risk-adjusted performers in the European hedge fund industry. 

Here are two Canadian railway stocks offering dividends TCI Fund Management continues to hold in 2022.

Also Read: A Railroad Stoppage Before Christmas Could Cause Over $2 Billion In Economic Damage, Driving Inflation Even Higher

Canadian National Railway CNI offers a dividend yield of 2.34% or $2.92 per share annually, conducting quarterly payments with a decent track record of increasing its dividends for seven consecutive years.

Canadian National Railway has approximately 24,000 railroaders transporting more than $183 billion worth of goods annually for a wide range of business sectors, across a rail network of approximately 20,000 route-miles spanning Canada and the Midwest and Southern U.S.

In the third quarter, TCI maintained its stake in Canadian National Railway of 36.6 million shares accounting for 14% of the portfolio, its third largest holding.

Canadian Pacific Railway Ltd CP offers a dividend yield of .95% or 76 cents per share annually, making quarterly payments with an inconsistent track record of increasing its dividends.

Canadian Pacific Railway is the second-smallest Class I railroad by revenue and route miles, and is operating on more than 12,500 miles of track across most of Canada and into parts of the Midwestern and Northeastern U.S.

Over the course of the third quarter, TCI maintained its stake in Canadian Pacific Railway of 55.8 million shares accounting for 13% of the portfolio, its fourth largest holding.

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Photo: Courtesy Canadian Pacific

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