High yields backed by steady cash flows

When picking high dividend stocks, we continue to recommend that you look beyond yield (dividend rate divided by share price). Instead, focus on high-quality companies with long histories of rising payouts, such as these four utilities (including Canadian Utilities, see box on page 74). Their… Read More

High p/e ratio makes Fortis a hold

FORTIS INC. $32 (Toronto symbol FTS; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 174.4 million; Market cap: $5.6 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www.fortis.ca) continues to benefit from its 2007 purchase of Terasen Inc., which distributes natural gas to… Read More

FORTIS INC. $32 – Toronto symbol FTS

FORTIS INC. $32 (Toronto symbol FTS; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 173.7 million; Market cap: $5.6 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.5%; TSINetwork Rating: Above Average; www.fortis.ca) is the main supplier of electrical power in Newfoundland and Prince Edward Island. It also… Read More

Utilities still top choices for income

In light of today’s low interest rates, we continue to recommend that income-seeking investors buy high-quality utility stocks instead of bonds.

These five utilities’ dividend yields have come down lately, but that’s because their stock prices are rising, not because they are cutting their payouts… Read More

Coal restrictions burden these four

The federal government plans to phase out coal-fired power plants by around 2025. Under the proposals, utilities would have to close their coal-fired plants when they reach 45 years of age, or when their power-purchase contracts with provincial electricity regulators expire, whichever is later. Coal-plant… Read More