Canadian Pacific Railway hikes dividend by 155 per cent

CALGARY — Canadian Pacific Railway Ltd. is raising its quarterly dividend by 15.5 per cent.The railway says it will now make a regular payment to shareholders of 65 cents per share, up from 56.25 cents per share.Based on the company’s closing share price of $238.76 on Wednesday it will have an annual yield of about 1.09 per cent.Canadian Pacific also said that it bought back about 4.4 million of its shares at a weighted average price of $214.31 in May.By buying back its stock, a company spreads its profits over fewer shares.That increases its return on equity and earnings per share, two key ratios used to determine a company’s financial health and investment rating.

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