Kansas City Southern Declares Dividends on 4% Non-Cumulative Preferred Stock and Common Stock

Rhea-AI Summary

Kansas City Southern (KSU) announced a regular dividend of $0.25 per share for its 4% non-cumulative preferred stock, payable on January 18, 2022. for stockholders of record as of December 31, 2021.

Additionally, a dividend of $0.54 per share on common stock will be paid on January 19, 2022. However, if the merger with Canadian Pacific Railway closes before the record dates, these dividends will not be paid.

Positive

• Regular dividend of $0.54 per share on common stock supports shareholder returns.
• Regular dividend of $0.25 per share on preferred stock provides additional income to preferred stockholders.

Negative

• Dividends may not be paid if the merger closes before the record dates.

KANSAS CITY, Mo.--(BUSINESS WIRE)-- Kansas City Southern’s (KCS) (NYSE:KSU) Board of Directors on November 5, 2021 declared a regular dividend of $0.25 per share on the outstanding KCS 4% non-cumulative preferred stock. The dividend is payable on January 18, 2022 to preferred stockholders of record at the close of business on December 31, 2021.

The Board of Directors also declared a regular dividend of $0.54 per share on the outstanding KCS common stock. This dividend is payable on January 19, 2022, to common stockholders of record at the close of business on December 31, 2021.

In the event the Company’s pending merger with Canadian Pacific Railway Limited, pursuant to the merger agreement dated September 15, 2021, closes before the record dates set forth above for such dividends, such dividends will not be paid. In such event, KCS common stockholders who receive CP common stock in the merger will be eligible to receive the CP dividend payable to holders of record of CP common stock on December 31, 2021, assuming they remain record holders of CP common stock on such date.

Headquartered in Kansas City, Mo., Kansas City Southern (KCS) (NYSE: KSU) is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances with other North American rail partners are primary components of a unique railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada. More information about KCS can be found at www.kcsouthern.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211105005825/en/

KCS: Ashley Thorne, 816-983-1530, athorne@kcsouthern.com

Source: Kansas City Southern

FAQ

What is the dividend amount for KSU's common stock?

The dividend for KSU's common stock is $0.54 per share.

When will KSU's dividends be paid?

KSU's dividends will be paid on January 19, 2022, for common stock and January 18, 2022, for preferred stock.

What happens to KSU's dividends if the merger occurs before the record date?

If the merger with Canadian Pacific Railway closes before the record date, KSU's dividends will not be paid.

When is the record date for KSU's dividends?

The record date for KSU's dividends is December 31, 2021.