The CPKCL Board of Directors recognizes the importance of providing shareholders with a return on their investment. Accordingly, the Board of Directors will consider the payment of quarterly dividends out of the funds or property of CPKCL properly available for that purpose.

The amount of any quarterly dividend will be determined by the Board of Directors based on a number of factors which may include the results of operations, financial condition, cash requirements and future prospects of CPKCL. Holders of CPKCL Common Shares should be aware that the Board of Directors is under no obligation to declare dividends and the declaration of dividends is wholly within its discretion.

Further, the Board of Directors may cease declaring dividends or may declare dividends in amounts which are different from those previously declared. Finally, restrictions in the credit or financing agreements entered into by CPKCL or the provisions of applicable law may preclude the payment of dividends in certain circumstances.

Canadian Pacific Kansas City Limited does not have a Dividend Reinvestment Plan or a Share Purchase Plan.

Eligibility of Canadian Pacific Kansas City Limited dividends for enhanced tax treatment

Eligibility of Canadian Pacific Kansas City Limited dividends for enhanced tax treatment All dividends paid or to be paid by Canadian Pacific Kansas City Limited (including those paid during 2006) are designated as “eligible” dividends, unless indicated otherwise, for purposes of the Income Tax Act (Canada) and any similar provincial/territorial legislation.

Eligible dividends received by individuals resident in Canada are entitled to a higher dividend gross-up and dividend tax credit, resulting in a reduction in the income tax otherwise payable on those dividends.

CPKCL dividend history