atco
ATCO LTD. (Toronto symbols ACO.X [class I non-voting] $58 and ACO.Y [class II voting] $58; Income Portfolio, Utilities sector; Shares outstanding: 58.2 million; Market cap: $3.4 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.atco.com) is a holding company....
ATCO LTD. $79 is a buy. The company (Toronto symbol ACO.X; Utilities sector; Shares outstanding: 112.5 million; Market cap: $8.9 billion; Dividend yield: 2.7%; Takeover Target Rating: Lowest; www.atco.com) is a good example of how spinoffs can unlock hidden value.
The Alberta-based holding company, along with its main subsidiary, Canadian Utilities Ltd. (Toronto symbol CU), has agreed to merge with Nova Scotia-based Emera Inc. (Toronto symbol EMA).
The Alberta-based holding company, along with its main subsidiary, Canadian Utilities Ltd. (Toronto symbol CU), has agreed to merge with Nova Scotia-based Emera Inc. (Toronto symbol EMA).
Canadian Utilities and its parent company, ATCO, have a long history of rewarding investors with annual dividend increases. Both will benefit from new projects in Alberta, while ATCO could further unlock value by spinning off its smaller businesses.
CANADIAN UTILITIES LTD. $51 is a buy. The company (Toronto symbol CU; Income-Growth Portfolio, Utilities sector; Shares outstanding: 272.3 million; Market cap: $13.9 billion; Dividend yield: 3.6%; Dividend Sustainability Rating: Highest; www.canadianutilities.com) distributes electricity and natural gas in Alberta and Australia. It also owns or invests in power plants.
CANADIAN UTILITIES LTD. $51 is a buy. The company (Toronto symbol CU; Income-Growth Portfolio, Utilities sector; Shares outstanding: 272.3 million; Market cap: $13.9 billion; Dividend yield: 3.6%; Dividend Sustainability Rating: Highest; www.canadianutilities.com) distributes electricity and natural gas in Alberta and Australia. It also owns or invests in power plants.
Canadian Utilities is now building a major new gas pipeline in Alberta, which will help power artificial intelligence datacentres. It also recently completed a new power transmission project. These projects are helping lift Canadian Utilities and its parent firm ATCO to record highs.
CANADIAN UTILITIES LTD. $53 is a buy. The company (Toronto symbol CU; Income Portfolio, Utilities sector; Shares outstanding: 272.3 million; Market cap: $14.4 billion; Price-to-sales ratio: 3.8; Dividend yield: 3.5%; TSINetwork Rating: Above Average; www.canadianutilities.com) distributes electricity and natural gas in Alberta and Australia.
CANADIAN UTILITIES LTD. $53 is a buy. The company (Toronto symbol CU; Income Portfolio, Utilities sector; Shares outstanding: 272.3 million; Market cap: $14.4 billion; Price-to-sales ratio: 3.8; Dividend yield: 3.5%; TSINetwork Rating: Above Average; www.canadianutilities.com) distributes electricity and natural gas in Alberta and Australia.
All three of these utility stocks are hitting new highs and for several reasons. Lower interest rates, which has increased investor interest in high-yielding dividend payers, is a leading one.
These three picks also stand to profit from the Canadian government’s plan to modernize the electricity grid to handle rising power demand from datacentres needed to run artificial intelligence.
These three picks also stand to profit from the Canadian government’s plan to modernize the electricity grid to handle rising power demand from datacentres needed to run artificial intelligence.
Here are TSI’s conglomerate dividend leaders, selected to deliver sustainable returns and growth as well as the potential for their holding company discounts to disappear.
ATCO LTD. (class I non-voting) is a buy. The company (Toronto symbols ACO.X [class I non-voting] $51 and ACO.Y [class II voting] $51; Income Portfolio, Utilities sector; Shares outstanding: 112.2 million; Market cap: $5.7 billion; Price-to sales ratio: 1.1; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.atco.com) gets most of its earnings from its 52.5% ownership of Canadian Utilities (Toronto symbol CU), which operates power and gas utilities in Alberta and Australia....
We’ve often said that growth by acquisition is riskier than growth from a company’s existing operations. That’s because the buyer of something rarely knows as much about it as the seller. That knowledge gap exposes the buyer to an above-average risk of unpleasant surprises.
Of course, some companies do a better job than others when acquiring assets....
Of course, some companies do a better job than others when acquiring assets....
RIOCAN REAL ESTATE INVESTMENT TRUST $17 is a buy. The REIT (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 292.7 million; Market cap: $5.0 billion; Price-to-sales ratio: 4.0; Distribution yield: 6.8%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 177 shopping centres and mixed-use properties.
The Hudson’s Bay Company (HBC) is now closing its 96 department stores....
Canadian Utilities and its parent company ATCO get most of their earnings from regulated power utilities in Canada. That gives them plenty of steady cash flows for dividends. They also have little exposure to U.S. tariffs.
CANADIAN UTILITIES LTD....
CANADIAN UTILITIES LTD....