CPKC Increases Dividend By 20 Percent

Rhea-AI Summary

CPKC has announced a significant 20 percent dividend increase, raising the quarterly dividend from $0.19 to $0.228 per share on outstanding Common Shares. The increased dividend will be payable on July 28, 2025, to shareholders of record as of June 27, 2025.

CEO Keith Creel emphasized that this increase reflects the company's commitment to returning value to shareholders and successful debt reduction following the merger of Canadian Pacific and Kansas City Southern. The dividend qualifies as "eligible" under Canadian tax regulations.

This strategic move demonstrates CPKC's financial strength and the success of their operating model following the transformational combination of the two railway companies.

AI-generated analysis. Not financial advice.

Positive

• 20% dividend increase from $0.19 to $0.228 per share, enhancing shareholder returns
• Successful debt reduction following CP-KCS merger completion
• Strong operating model performance enabling dividend growth

Negative

• None.

News Market Reaction – CP

+0.54%

1 alert

+0.54% News Effect

On the day this news was published, CP gained 0.54%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

CALGARY, AB, April 29, 2025 /PRNewswire/ - The Board of Directors of Canadian Pacific Kansas City Limited (TSX: CP) (NYSE: CP) (CPKC) today declared a quarterly dividend of $0.228 per share on the outstanding Common Shares, an increase of 20 percent to the previous dividend of $0.19 per share.

"We are pleased to announce an increase to our dividend as part of our ongoing commitment to returning cash to our shareholders and having delivered on our commitments to repay debt following the transformational combination of Canadian Pacific and Kansas City Southern into CPKC," said Keith Creel, CPKC President and Chief Executive Officer. "This dividend increase demonstrates the strength and resiliency of our operating model, and our dedication to creating value for our shareholders."

The dividend is payable on July 28, 2025, to holders of record at the close of business on June 27, 2025, and is an "eligible" dividend for purposes of the Income Tax Act (Canada) and any similar provincial/territorial legislation.

About CPKC

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR

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SOURCE CPKC

FAQ

How much did CPKC increase its dividend in April 2025?

CPKC (CP) increased its quarterly dividend by 20%, from $0.19 to $0.228 per share, effective April 29, 2025.

When is CPKC's new dividend payable to shareholders?

The new CPKC dividend of $0.228 per share is payable on July 28, 2025, to shareholders of record as of June 27, 2025.

Why did CPKC raise its dividend in 2025?

CPKC raised its dividend due to successful debt repayment following the Canadian Pacific-Kansas City Southern merger, demonstrating the strength of their operating model and commitment to shareholder value.

What is the new quarterly dividend amount for CP stock?

The new quarterly dividend for CP stock is $0.228 per share on outstanding Common Shares.

Is CPKC's 2025 dividend increase eligible for Canadian tax purposes?

Yes, CPKC's dividend increase is considered an 'eligible' dividend under the Income Tax Act (Canada) and similar provincial/territorial legislation.