There’s nothing that dividend investors love more than a big increase to their payout. And that’s just what Canadian Pacific Kansas City Limited (TSX:CP)(NYSE:CP) recently announced. On April 29, the railway operator said it would be increasing its quarterly dividend by 20%. The new dividend will be $0.228 per share moving forward, versus its previous quarterly payout of $0.19. Over the course of a full year, that totals $0.912 per share, which equates to a yield of 0.9%.

In the trailing 12 months, the company has generated $3.9 billion in earnings on sales totaling $14.8 billion, for an impressive profit margin of 26%. At 25 times its trailing earnings, the stock is moderately priced. And with a transnational railway that links Canada, the U.S., and Mexico, it can benefit from the continent’s long-term growth. While the near term may be troubling for these countries, over the long haul, the prospects should be much better.

The stock could make for an attractive and safe option right now as it has been fairly stable, with its year-to-date performance being flat this year. While that isn’t impressive, that’s also not bad at a time when the markets have been volatile and struggling amid tariff risk and concerns about a recession. And its longer-term performance has been much stronger. In five years, the stock has rallied by 66%.

If you want a stable stock that you can hang on to for years, and some dividend income, Canadian Pacific Kansas City Limited could be a good option to put into your portfolio.

COMTEX_465268242/2559/2025-05-06T09:57:52