OREANDA-NEWS. CN (TSX: CNR) (NYSE: CNI) announced that its Board of Directors has approved a 25 per cent increase in the Company's quarterly cash dividend. With this increase, CN's dividend on an annualized basis is CAD 1.25 per common share. The 25-cent increase in the annual dividend payment is the largest such increase in CN's history.

Luc Jobin, CN executive vice-president and chief financial officer, said: "In this 20th year since CN's privatization, we are pleased to continue our commitment to enhance shareholder returns. The substantial dividend increase reflects the Company's continued solid financial performance and confidence in its future prospects. This is also consistent with our new objective of gradually moving toward a 35 per cent dividend payout ratio."

A quarterly dividend of thirty-one-and-one-quarter cents (CAD 0.3125) per common share will be paid on March 31, 2015, to shareholders of record at the close of business on March 10, 2015.

Including today's announcement, CN has declared annual increases to its dividend 19 consecutive times, averaging 17 per cent per year, since its initial public offering of shares in 1995.