By Robb M. Stewart


Canadian National Railway plans to lift returns to shareholders this year with a boost to its dividend and a renewed share buyback program.

The rail operator said Tuesday its board has approved a 7% increase to the 2024 dividend after a 50% jump in net income for the final quarter of last year despite a dip in revenue from a year earlier.

A dividend for the first quarter of 0.845 Canadian dollar (63 U.S. cents) a share will be paid March 28 to shareholders of record as of the close of business March 7.

Under a new normal course issuer bid, CN Rail will over a 12-month period be able to purchase for cancellation up to 32 million of its shares, or about 5.6% of the issued and outstanding total.

The shareholder returns are in keeping with the company's plans to gradually increase leverage over time.

Under CN Rail's current buyback program, which expires at the end of the month, the company as of Jan. 18 had repurchased about 27.8 million shares at a weighted-average price of C$156.25 each, effectively returning C$4.35 billion to its shareholders.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

01-23-24 1645ET