- Union Pacific Corporation (UNP)
- Canadian National Railway Company (CNR)
- Canadian Pacific Kansas City Limited (CP)
Q: I already had CNR stock in my nonregistered portfolio ,I just added CP and UNP in my RRSP in order to complete my "transportation sector ", choosing mostly railroads for precise reasons. What is your impression concerning the timing + the choices , my objective being here : less volatility + some growth and dividends. Thanks for your always excellent comments.
5i Research Answer:
We think now could be a decent time to add to the railroad names, given that most high-quality rail names are trading at very attractive levels relative to their historical averages. These are high-quality dividend growers over time, and we think a portfolio of these names can do well for investors over time in the range of 12%-15% total returns on average with a relatively low-risk profile.