Canadian Pacific Kansas City declared a quarterly dividend of C$0.268 a share, payable Jan. 25, 2027 to shareholders of record at the close of business on Dec. 31, the railroad said in an Oct. 28 filing with the Securities and Exchange Commission. CPKC reports in Canadian dollars, and its third-quarter report lists dividends declared of the same $0.268 a share in that currency.
The amount has not moved since spring. CPKC raised the quarterly payment 17.5 percent to 26.8 cents from 22.8 cents in an April 28 release, and the October declaration repeats that figure for a payment three months further out. The raise added 4 cents a quarter, with a June 26 record date and a July 27 payment. Chief Executive Keith Creel said then that the company was “pleased to announce an increase to our dividend.”
For shareholders, the Dec. 31 record date is the one that counts, since it falls on the last day of the year and the money is not paid until Jan. 25, 2027. Anyone who holds the stock through a U.S. brokerage account should check how the firm handles a Canadian-dollar payment, because the filing gives one amount and the cash received depends on the account. Someone holding 100 shares would be due C$26.80 before taxes.
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Which stock exchange does this dividend belong to?
CPKC’s common shares trade on both the New York Stock Exchange and the Toronto Stock Exchange under the ticker CP, according to the Form 8-K. The company is incorporated in Canada and its address is 7550 Ogden Dale Road S.E. in Calgary, Alberta. The filing was signed Oct. 30 by Tyler Robinson, the company’s general counsel and assistant corporate secretary.
The 8-K reports the declaration under Item 8.01, the section for other events, and attaches the Oct. 28 press release as an exhibit. The filing also lists a second registered security, the Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company, which trades under CP/40 in New York and BC87 in London. The 8-K does not carry results or commentary from executives, which come in the separate quarterly earnings report.
What did the railroad earn in the quarter before the declaration?
CPKC reported third-quarter revenue of C$4.2 billion, up 15 percent from a year earlier, in the earnings release. Diluted earnings were C$1.04 a share, compared with C$1.01 a year ago, and core adjusted diluted earnings were C$1.28, up 16 percent from C$1.10.
Against those two figures, the 26.8-cent dividend works out to about 26 percent of reported quarterly earnings and about 21 percent of the core adjusted number. The release says dividends declared in the quarter were C$0.268 a share, totaling C$234 million.
Creel said in the release that “CPKC delivered solid results, powered by momentum across our unrivalled North American network,” and that the company is on track to meet its commitments for the year.
Did the cost of running the railroad rise?
The operating ratio, which measures operating expenses as a share of revenue, was 64.8 percent on a reported basis, up 130 basis points from a year earlier. On a core adjusted basis it was 61.9 percent, up 120 basis points. A basis point is one-hundredth of a percentage point, so 130 basis points is 1.3 points. A higher ratio means more of each revenue dollar went to costs, which is why a rise is the unwelcome direction.
The company says higher fuel prices hurt the reported ratio by 170 basis points and the core adjusted ratio by 190 basis points. In other words, fuel cost more than the entire rise in the ratio, and the rest of the business moved the other way. Revenue grew 15 percent while reported earnings per share rose only 3 percent, and the company’s core adjusted earnings, which rose 16 percent, show a bigger gain.
What does a payment in January change for a household?
Twenty-five days separate the record date from the payment: the list of shareholders closes Dec. 31, and the cash goes out Jan. 25. The payment goes to the holders on that list, not to people who buy shares later.
A dividend declared Oct. 28 and paid Jan. 25 is a three-month wait that crosses a calendar year, and it lands in 2027 rather than 2026. That timing matters to anyone planning cash flow around a year-end, because the money cannot cover a December bill. It is also the board’s decision for one quarter only, and the filing sets no amount for the quarters after it.
The payment is also small next to the size of the holding that earns it. At 26.8 cents a quarter, a year of the same payments would be about C$1.07 a share, and a share price can swing by more than that in a week. Dividend income is worth having, but it is the part of retirement income that depends on a board vote and a market price.
Where should January’s CPKC dividend land?
A dividend that arrives Jan. 25 cannot pay a bill due in December, and the board votes on the amount one quarter at a time. Money a household needs on a schedule is safest where the balance does not depend on a share price or a board vote.
Make Your Savings Pay You is an 11-page guide to the insured places that pay more than a near-zero bank account. It covers every dollar insured, even above $250,000 at one bank, high-yield savings for the cushion you might need this year, and Treasury bills from $100, free of state and local income tax.
Get the savings guide for cash that has to be there before a January dividend →
This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
