CN (TSX: CNR) (NYSE: CNI) announced today that its Board of Directors has approved the repurchase of its shares under a new normal course issuer bid (Bid), as well as an 8% increase in the 2023 dividend on the Company's common shares outstanding.

The Bid, in the range of C$4 billion, permits CN to purchase, for cancellation, over a 12-month period up to 32 million common shares, representing 4.8% of the 671,253,977 common shares issued and outstanding of the Company on January 18, 2023.

“We are pleased to uphold our track record of consistent dividend growth. Our share repurchase program reflects our prudent approach in returning a significant amount of capital to shareholders despite a softening economy. This is a testament to our confidence in the strong cash flow generation capacity of CN throughout business cycles.”
- Ghislain Houle, Executive Vice-President and Chief Financial Officer, CN

The Bid will be conducted between February 1, 2023 and January 31, 2024 through a combination of discretionary transactions and automatic repurchase plans at market prices prevailing at the time of purchase, through the facilities of the Toronto and New York stock exchanges, or alternative trading systems in Canada and in the United States, if eligible, and will conform to their regulations. Purchases may also be conducted using derivative-based programs, accelerated share repurchase transactions, or other methods of acquiring shares, subject to any required regulatory approval and on such terms and at such times as shall be permitted by applicable laws.

The decisions regarding the timing and size of future purchases of common shares under the Bid are subject to management’s discretion and are based on a variety of factors, including market conditions. The new Bid was approved by the Toronto Stock Exchange (TSX) today. TSX rules permit CN to purchase daily, through TSX facilities, a maximum of 255,460 common shares under the Bid.

CN believes that the repurchase of its shares represents an appropriate and beneficial use of the Company's funds.

CN's current normal course issuer bid announced in January 2022 for the purchase of up to 42 million common shares expires on January 31, 2023. As at the close of trading on January 18, 2023, CN had repurchased 30,839,917 common shares at a weighted-average price of C$156.42 per share, excluding brokerage fees, returning C$4,824 million to its shareholders. Purchases were made through the facilities of the Toronto and New York stock exchanges, or alternative trading systems in Canada and in the United States.

CN's Board of Directors also approved a first-quarter 2023 dividend on the Company's common shares outstanding. A quarterly dividend of seventy-nine cents (C$0.7900) per common share will be paid on March 31, 2023, to shareholders of record at the close of business on March 10, 2023.