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3 Large Caps Delivering Stellar Results

Consider the following three companies and their recent results when looking to add to your stock holdings. A railroad, technology, or real estate development component can be a potential positive addition to your portfolio.

1. Canadian National Railway

Canadian National Railway (TSX: CNR)(NYSE: CNI) focuses on product and geographic diversity. Its freight revenues come from seven commodity groups transported between a broad spectrum of origins and destinations. It achieved record volumes and revenues in 2013. Its full-year 2013 adjusted diluted earnings per share increased 9% to $3.06. CN Rail had adjusted 2013 net income of $2.58 billion in comparison to $2.46 billion in 2012.

For Q2 2014, the company’s net income was $847 million ($1.03 per diluted share) versus net income of $717 million ($0.84 per diluted share) for Q2 2013. Q2 2014 revenues rose 17% to $3.12 billion, and revenue ton-miles grew by 14%. Car loadings increased 11%.

Canadian National Railway is trading near its 52-week high as of this writing. The company’s dividend yield is 1.40% and its five-year average dividend yield is 1.50%. Its annual payout is $1.00.   

2. Celestica

Celestica (TSX: CLS)(NYSE: CLS) provides supply chain solutions to original equipment manufacturers and service providers. Its capability is in design and engineering, electronics manufacturing and supply chain management services.

Regarding Q2 2014, Craig Muhlhauser, Celestica’s President/CEO, said, “Celestica delivered a solid second quarter with revenue and adjusted earnings per share at the higher end of our guidance driven primarily by demand strength from our communications end market.”

Celestica’s earnings per share for Q2 2014 was $0.22 per share, versus $0.15 per share for Q2 2013. The company’s revenue dollars from its diversified end market increased 11% from Q2 2013. This represents 28% of total revenue, an increase from 25% of total revenue for Q2 2013.

In 2013, Celestica’s revenue by end market was Communications (42%); Consumer (6%); Diversified (25%); Servers (13%), and Storage (14%).

3. PrairieSky Royalty

PrairieSky Royalty (TSX: PSK) is one of the largest independently owned portfolios of fee simple mineral title in Canada. PrairieSky was established to acquire fee simple mineral title lands, chiefly in the province of Alberta. The company has approximately 6.3 million acres.

An oil sands royalty enterprise, PrairieSky Royalty was spun off from Encana (TSX: ECA)(NYSE: ECA) this past May. It started active operations on May 27, 2014, after the acquisition of its royalty business from Encana. It completed its IPO on May 29, 2014. The company generates royalty revenues as petroleum and natural gas are produced from its properties.

Last week, PrairieSky announced its interim period results for the 35-day period ending June 30, 2014. Funds from operations were $31 million and its production averaged 15,664 boe/d. This comprised 44% crude oil, 10% natural gas liquids and 46% natural gas.

In June, PrairieSky Royalty announced that its board declared a dividend of $0.1058 per common share. Its dividend yield is 3.00% and its annual payout is $1.27. The company pays dividends monthly.  

The above-mentioned companies are on the right track in 2014. Research them as possible additions to diversify and strengthen your portfolio.

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