Railroad stocks such as Canadian National Railway (TSX:CNR) and Canadian Pacific Kansas City (TSX:CP) have generated massive wealth for long-term shareholders. If we adjust for dividend reinvestments, Canadian National Railway has returned 1,380% to shareholders since September 2004, easily outpacing the TSX index gains of 403%. Comparatively, Canadian Pacific Kansas City stock has returned more than 2,000% in this period.
However, as past returns shouldn’t matter much to current and future shareholders, let’s see which Canadian railroad stock is a better buy right now.
The bull case for Canadian National Railway stock
Valued at $98.5 billion by market cap, Canadian National Railway transports several products, such as petroleum, chemicals, grains, fertilizers, coal, metals, and minerals, as it serves exporters, retailers, farmers, and manufacturers, with a network of 19,500 route miles of track…
