CANADIAN UTILITIES LTD. - Toronto symbols CU $62 and CU.X $62

CANADIAN UTILITIES LTD. (Toronto symbols CU [class A non-voting] $62 and CU.X [class B voting] $62; Income Portfolio, Utilities sector; Shares outstanding: 127.6 million; Market cap: $7.9 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.canadianutilities.com) distributes electricity and natural gas in Alberta. It also operates 19 power plants in Canada, Australia and the U.K.

The company has a higher p/e ratio than ATCO: the stock trades at 15.4 times Canadian Utilities’ likely 2012 earnings of $4.02 a share.

However, Canadian Utilities’ shares are more liquid. As well, its higher dividend makes it a better choice for income-seeking investors. Canadian Utilities recently raised its quarterly dividend by 9.9%, to $0.4425 a share from $0.4025. The new annual rate of $1.77 yields 2.9%.

Canadian Utilities is a buy. The more liquid class A non-voting shares are the better choice.

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