My guest Canadian Pacific Railway - A New Dividend Aristocrat post at Engineer My Freedom explains why I think the company's share price is overvalued and what I deem to be fair.
Canadian Pacific Railway (CP), Canada's second-largest Class 1 freight railway, transports bulk commodities (eg. grain, coal, potash, fertilizers, and sulphur), and merchandise freight such as energy, chemicals and plastics, metals, minerals and consumer, automotive, and forest products. It also transports intermodal traffic comprising retail goods in overseas containers and offers rail and intermodal transportation services through a network of ~13,000 track miles and serves 11 ports on the Atlantic and the Pacific coasts.
Canadian Pacific Railway has rewarded investors who acquired reasonably valued shares. The current valuation appears to be somewhat high based on management's FY2021 guidance. I would consider adding to my position at a share price closer to $380.
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Disclaimer: I do not know your individual circumstances and am not providing individualized advice or recommendations. You should not make any investment decision without conducting your own research and due diligence.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with the company mentioned in this article.
Disclosure: I and long Canadian Pacific Railway in the FFJ Portfolio.
