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Derived from payout historyIncome reliability
Quarterly income profile is visible
CP.TO has an income profile aligned with its dividend company role. Provider data shows 4 recent payout records.
Market dataIncome framework read
Dividend CompanyTSXCanada
CP.TO
Canadian Pacific Kansas City
IndustrialsPlain dividendQuarterly
Market Snapshot
$130.81
+$0.42 (32.21%)
Toronto
Yield
0.82%
Rate $1.07
Next Payment
—
Ex-date 2026-09-25
52wk Position
95.31%
-1.28% below high
Updated —
Decision Area
Distribution and DRIP Defense
Payout history, default DRIP coverage, and price creep pressure using market data where available.
Distribution Chart
Last 12 payments
Confirmed Expected
Coverage Ratio Test
DRIP defense check
- Cash
- $26.75
- APR
- 0.204
- Coverage
- 0.204
Rung failed. Restore immediately or rebalance the holding.
Price Creep
Defended price ceiling
- Max defended
- $26.75
- Cushion
- -$104.06
- Cushion %
- -79.55%
Current $130.81Break $26.75
Smart Recommendation
CP.TO is not defended at these inputs; top up shares, lower TPR, or test alternatives.
Research Signals
Payout sustainability
Very low, 18-20.2% earnings basis, 34-38% cash payout
1mo agoDRIP availability
Likely available
1mo agoTax character
Eligible dividend (company-confirmed)
1mo agoDistribution history
17.5% increase to $0.268/share effective April 2026 (company-reported); multi-year streak not independently confirmed this pass
1mo agoStructure complexity
Low-moderate, dual-listed TSX/NYSE
1mo agoIncome trend
Softening near-term
1mo agoAccount suitability
Hold TSX line (CP.TO) for Canadian eligible-dividend treatment
1mo agoStructure Overview
Canadian Pacific Kansas City (CP) operates the only single-line railway connecting Canada, the United States, and Mexico. Q1 2026 results (quarter ended March 31, 2026) showed revenue down 2% year-over-year to $3.7 billion and net income down 7.1% to $845 million, driven by foreign exchange and fuel cost pressure, even as the company reported record Q1 grain volumes and a 2% increase in Revenue Ton-Miles. The board approved a 17.5% dividend increase alongside a new share buyback program, and management reiterated confidence in full-year 2026 guidance.
Canadian Planning Notes
- 1CP is dual-listed on the TSX (CP.TO) and NYSE (CP); Canadian investors should confirm they hold the TSX line to receive Canadian eligible-dividend tax treatment rather than US-sourced income treatment on the NYSE line.
- 2Q1 2026's softer earnings were explicitly attributed by the company to FX and fuel costs, not a change in the underlying freight-volume trend, which improved during the quarter.
- 3DRIP is common among large-cap Canadian dividend payers; confirm optional cash purchase support with your broker.
Market Facts
Market Data
A factual market, distribution, valuation, and financial snapshot for this holding.
Canadian Context
Account placement
Non-registered
Eligible Canadian dividends qualify for the dividend tax credit, which can improve after-tax income in taxable accounts.
TFSA: Tax-free growth and withdrawals.
RRSP: Tax-deferred growth, with withdrawals taxed as regular income.
Eligible dividend tax credit
- Total credit
- $345.27
- Effective rate
- 34.53%
Broker DRIP status
Questrade
Available
Wealthsimple
Available
RBC Direct Investing
Available
TD Direct Investing
Available
Run Your Numbers
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This profile is informational only and does not constitute licensed financial advice. Signal values, planning notes, market data, and structure summaries may not reflect the most current issuer disclosures. Always verify current payout policy, ex-dividend dates, financial statements, and issuer communications before making any investment decision.