CN Announces New Normal Course Issuer Bid for Share Repurchase and 3% Dividend Increase

Rhea-AI Summary

CN (NYSE: CNI) announced a 3% increase to its 2026 quarterly dividend and a new normal course issuer bid to repurchase up to 24 million common shares (3.9% of issued shares) from Feb 4, 2026 to Feb 3, 2027.

The quarterly dividend is C$0.9150 per common share, payable Mar 31, 2026 to holders of record on Mar 10, 2026. The TSX approved the Bid on Jan 29, 2026; prior bid repurchases totaled 15,250,222 shares at a weighted-average price of C$134.44, returning C$2,050 million to shareholders.

Positive

• Dividend increased by 3% for 2026
• Declared quarterly dividend of C$0.9150 payable Mar 31, 2026
• New share repurchase up to 24 million common shares (3.9% of shares)
• Previous repurchases: 15,250,222 shares at C$134.44 weighted-average, returning C$2,050 million
• TSX approval received on Jan 29, 2026

Negative

• None.

Key Figures

Dividend increase: 3% New buyback authorization: 24,000,000 shares Buyback as % of shares: 3.9% +5 more

8 metrics

Dividend increase 3% Increase in 2026 dividend on outstanding common shares

New buyback authorization 24,000,000 shares Maximum common shares under new normal course issuer bid

Buyback as % of shares 3.9% Of 613,523,348 common shares outstanding on January 22, 2026

Shares outstanding 613,523,348 Common shares issued and outstanding on January 22, 2026

Shares not held by insiders 613,155,320 Common shares not held by insiders on January 22, 2026

Q1 2026 dividend per share C$0.9150 Quarterly dividend payable March 31, 2026

Shares repurchased to date 15,250,222 Repurchased under current bid as of January 22, 2026

Capital returned via buyback C$2,050 million Total paid for repurchases under current bid, excluding fees

Market Reality Check

Price: $101.03 Vol: Volume 2628832 is 2.12x t...

high vol

$101.03 Last Close

Volume Volume 2628832 is 2.12x the 20-day average of 1238239, indicating elevated interest ahead of this shareholder-return update. high

Technical Trading above 200-day MA, with price at 101.03 versus 200-day MA of 98.24 before this announcement.

Peers on Argus

CNI gained 2.53% with other rail peers also green: NSC 2.17%, CP 3.62%, CSX 0.99...

CNI gained 2.53% with other rail peers also green: NSC 2.17%, CP 3.62%, CSX 0.99%, UNP 1.62%, WAB 0.74%. The move occurred alongside broad strength in railroads.

Previous Buybacks,dividends Reports

1 past event · Latest: Jan 30 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Jan 30	Buyback & dividend	Positive	-0.7%	Announced 5% dividend hike and new buyback for up to 20M shares.

Pattern Detected

Prior buyback/dividend news was shareholder-friendly but saw a modest negative price reaction, indicating past divergence between fundamentals and immediate trading response.

Recent Company History

Recent history shows CN using capital returns and operational updates to frame its story. On Jan 30, 2025, it combined a 5% dividend increase with authorization to repurchase up to 20 million shares, yet shares fell 0.66%. Today’s announcement mirrors that playbook with a 3% dividend increase and a larger repurchase capacity of up to 24 million shares, reinforcing a consistent shareholder-return strategy.

Historical Comparison

buybacks,dividends

+0.7 %

Average Historical Move

Historical Analysis

In the past year, CN had one prior buyback/dividend announcement with an average move of 0.66%. Today’s 2.53% gain represents a stronger reaction to similar shareholder-return news.

Typical Pattern

The company followed a consistent pattern of pairing annual dividend increases with renewed share repurchase authorizations from 2025 to 2026.

Market Pulse Summary

This announcement combines a 3% dividend increase with a new normal course issuer bid allowing repur...

Analysis

This announcement combines a 3% dividend increase with a new normal course issuer bid allowing repurchase of up to 24,000,000 shares, or 3.9% of shares outstanding. It follows a similar 2025 program that raised the dividend and authorized up to 20,000,000 repurchases. Investors may focus on execution pace, future cash generation, and how continued buybacks and dividends interact with CN’s investment and balance sheet plans.

Key Terms

normal course issuer bid, automatic repurchase plans, derivative-based programs, accelerated share repurchase transactions, +1 more

5 terms

normal course issuer bid financial

"the repurchase of its shares under a new normal course issuer bid (Bid)"

A Normal Course Issuer Bid is when a company buys back its own shares from the stock market over time. This usually shows that the company believes its stock is undervalued and wants to support its price, which can be important for investors to watch.

automatic repurchase plans financial

"through a combination of discretionary transactions and automatic repurchase plans"

An automatic repurchase plan is a preset program a company uses to buy back its own shares on a regular schedule or when specific conditions are met, often executed by a broker without new approvals each time. For investors this matters because buybacks reduce the number of shares available, which can raise earnings per share and signal management’s confidence in the business, similar to a store quietly removing some of its products to boost the value of what remains.

derivative-based programs financial

"Purchases may also be conducted using derivative-based programs"

Derivative-based programs are arrangements that use financial contracts whose value is tied to an underlying asset—such as stocks, bonds, or indexes—to achieve specific goals like hedging risk, raising cash, or creating synthetic ownership. For investors, these programs can change a company’s economic exposure, potential dilution of shares, or future cash needs in ways that are less visible than straightforward stock sales; think of them as insurance or rental agreements for financial exposure that alter risk and returns without always moving the underlying asset itself.

accelerated share repurchase transactions financial

"using derivative-based programs, accelerated share repurchase transactions, or other methods"

A way for a company to buy back a large number of its own shares immediately by contracting with a bank that delivers the stock up front and then fills the trade over time. It matters to investors because it quickly reduces the number of shares outstanding—similar to a store buying back its own coupons to raise the value of each remaining coupon—which can raise profit per share, signal management’s confidence, and change the company’s cash and debt picture.

forward-looking statements regulatory

"CN Forward-Looking StatementsCertain statements included in this news release constitute "forward-looking statements""

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

MONTREAL, Jan. 30, 2026 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) announced today that its Board of Directors has approved a 3% increase in the 2026 dividend on the Company's outstanding common shares as well as the repurchase of its shares under a new normal course issuer bid (Bid).

“These actions reflect CN’s strong cash flow and our disciplined approach to managing capital. We are investing in the business, returning capital to shareholders and maintaining a strong balance sheet to support long-term performance.”
   -   Ghislain Houle, Executive Vice-President and Chief Financial Officer, CN

The Bid permits CN to purchase, for cancellation, over a 12-month period up to 24 million common shares, representing 3.9% of the 613,523,348 common shares issued and outstanding of the Company on January 22, 2026. On that date, 613,155,320 common shares not held by insiders were issued and outstanding.

The Bid will be conducted between February 4, 2026, and February 3, 2027, through a combination of discretionary transactions and automatic repurchase plans at market prices prevailing at the time of purchase, through the facilities of the Toronto and New York stock exchanges, or alternative trading systems in Canada and in the United States, if eligible, and will conform to their regulations. Purchases may also be conducted using derivative-based programs, accelerated share repurchase transactions, or other methods of acquiring shares, subject to any required regulatory and stock exchange approvals and on such terms and at such times as shall be permitted by applicable laws.

The decisions regarding the timing and size of future purchases of common shares under the Bid are subject to management’s discretion and are based on a variety of factors, including market conditions. The new Bid was approved by the Toronto Stock Exchange (TSX) on January 29, 2026. TSX rules permit CN to purchase daily, through TSX facilities, a maximum of 395,423 common shares under the Bid.

CN believes that the repurchase of its shares represents an appropriate and beneficial use of the Company's funds.

CN's current normal course issuer bid, announced in January 2025 for the purchase of up to 20 million common shares, expires on February 3, 2026. As at the close of trading on January 22, 2026, CN had repurchased 15,250,222 common shares at a weighted-average price of C$134.44 per share, excluding brokerage fees, returning C$2,050 million to its shareholders. Purchases were made through the facilities of the TSX and alternative trading systems.

CN's Board of Directors also approved a first-quarter 2026 dividend on the Company's outstanding common shares. A quarterly dividend of ninety-one and a half cents (C$0.9150) per common share will be paid on March 31, 2026, to shareholders of record at the close of business on March 10, 2026.

CN Forward-Looking Statements
Certain statements included in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including statements based on management’s assessment and assumptions and publicly available information with respect to CN. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as "believes," "expects," "anticipates," "assumes," "outlook," "plans," "targets," "goals," or other similar words. Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.

Contacts:

Media	Investment Community
Ashley Michnowski	Stacy Alderson
Senior Manager	Assistant Vice-President
Media Relations	Investor Relations
(438) 596-4329	(514) 399-0052
media@cn.ca	investor.relations@cn.ca

FAQ

What dividend did CN (CNI) announce for first-quarter 2026 and when will it be paid?

CN declared a quarterly dividend of C$0.9150 per common share payable on March 31, 2026. According to the company, shareholders of record at the close of business on March 10, 2026 will receive the dividend.

How many shares will CN (CNI) be authorized to repurchase under the new issuer bid?

CN can repurchase up to 24 million common shares, representing 3.9% of issued shares. According to the company, purchases run from February 4, 2026 through February 3, 2027 and may use various market methods.

What was CN's repurchase activity under the prior 2025 normal course issuer bid?

Under the prior bid, CN repurchased 15,250,222 shares at a weighted-average price of C$134.44, returning C$2,050 million to shareholders. According to the company, those purchases were completed through TSX and alternative trading systems.

When does CN's new normal course issuer bid (CNI) start and end?

The new bid will run from February 4, 2026 to February 3, 2027. According to the company, the TSX approved the Bid on January 29, 2026 and daily purchases will follow exchange rules.

What limits apply to CN's daily repurchases under the new bid on the TSX?

TSX rules permit CN to purchase up to 395,423 common shares daily through TSX facilities under the Bid. According to the company, actual timing and size of purchases remain at management’s discretion based on market conditions.