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The Globe and Mail

CP Rail hikes quarterly dividend ahead of key vote

Canadian Pacific Railway Ltd. is raising its quarterly dividend to 35 cents from 30 cents ahead of a key shareholder vote.

The railway's largest shareholder, Pershing Square Capital Management, is seeking to replace the railway's chief executive.

The New York-based firm has put forth seven nominees to sit on CP's 15-member board, which will be elected at the company's annual meeting next month in Calgary.

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Last week, CP reported first-quarter results that were much improved compared with a year ago.

Helped in part by a milder winter and improved operations, the railway reported a profit of $142-million, up from $34-million a year ago.

Shares in the company were down $2.24 at $74.21 on the Toronto Stock Exchange on Monday.

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