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Canadian National Railway Company (CNR)
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Canadian Pacific Kansas City Limited (CP)
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iShares S&P/TSX Composite High Dividend Index ETF (XEI)
Thanks for the great service, a different ETF or investment idea for consideration would be welcomed.
We like CNR, and the company operates in a duopoly market with CP. Although the rail industry may not grow too fast from here, the industry has tremendous staying power, and we expect CNR could continue to grow its dividends for decades.
XEI also includes other high-quality dividend yield names such as ENB, TD, CNQ, etc. But we think given the duopoly position of CNR, we think CNR is an above-average dividend name. We would not see CNR as a 'sell' today, but if one wanted more diversity and more income we would not object to such a plan. An ETF owning 75 positions obviously will be less risky than a single company. It will also of course have less upside potential vs CNR if CNR performs well. For income and some growth potential, we would be quite comfortable with XEI.