Opt for these dependable utilities over bonds

The Bank of Canada has now increased its benchmark interest rate by another 25 basis points—to 5.0%—in response to still-high inflation.
Generally, higher interest rates diminish the appeal of dividend-paying utility stocks, as investors shift to better-yielding bonds. Rising interest rates also increase utilities’ borrowing costs—and… Read More

ATCO LTD. – Toronto symbols ACO.X and ACO.Y

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. Its main subsidiary… Read More

We like both the parent and subsidiary

Canadian Utilities and its parent company ATCO remain great ways for investors to earn reliable dividends. Investors looking for yield should opt for the subsidiary, while value seekers should buy the parent for its holding company discount.
CANADIAN UTILITIES LTD. (class A non-voting) is a buy. The… Read More

High-quality utilities still top bonds

We prefer top-quality utility stocks over bonds, mainly due to the favourable tax treatment of dividends compared to interest payments. We like both Canadian Utilities and ATCO, which both offer dependable dividends. ATCO’s holding company discount also enhances its appeal.
CANADIAN UTILITIES LTD. (class A non-voting)… Read More