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Topic: Dividend Stocks

ENCANA CORP. $26 – Toronto symbol ECA

ENCANA CORP. $26 (www.encana.com) has completed its plan to sell shares of subsidiary PrairieSky Royalty Ltd. (Toronto symbol PSK) to the public. PrairieSky owns the oil and natural gas rights to 5.2 million acres in Alberta. It will not drill wells or explore for new reserves. Instead, it will collect royalties from other oil and gas producers. Encana received $1.67 billion and now owns 54% of PrairieSky. The proceeds are equal to 9% of Encana’s $19.2-billion market cap. In the future, Encana could hand out these shares to its own investors as a special dividend. Buy.

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