atco
TC ENERGY INC., $52.08, Toronto symbol TRP, remains a buy.
TC generates steady cash flow for investors mainly through a 93,700-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,900 kilometres of crude oil pipelines and nine power plants.
The company continues to make progress with its plan to build a new pumped storage hydro power project near Meaford, Ontario....
TC generates steady cash flow for investors mainly through a 93,700-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,900 kilometres of crude oil pipelines and nine power plants.
The company continues to make progress with its plan to build a new pumped storage hydro power project near Meaford, Ontario....
Utilities stocks fell in 2023 on strong and competing demand for bonds as interest rates spurred bond yields. Higher interest rates also increased the borrowing costs for utilities as they undertook new projects and upgrades.
However, it now looks like interest rates will come down in the next few months....
ATCO LTD. (class I non-voting) is a buy. The company (Toronto symbols ACO.X [class I non-voting] $38 and ACO.Y [class II voting] $38; Income Portfolio, Utilities sector; Shares outstanding: 113.4 million; Market cap: $4.3 billion; Price-to sales ratio: 0.9; Dividend yield: 5.0%; TSINetwork Rating: Above Average; www.atco.com) gets 80% of its revenue from its stake in Canadian Utilities Ltd....
The shares of these two utilities have suffered in 2023 as higher interest prompted investors to shift into bonds. It now looks like rates will fall in 2024, which should lift their share prices. Meantime, their high-quality assets will continue to let them keep raising their dividends.
CANADIAN UTILITIES LTD....
CANADIAN UTILITIES LTD....
CANADIAN TIRE CORP., $144.81, Toronto symbol CTC.A, is a buy.
Investors benefit from the company’s 503 Canadian Tire stores. They sell automotive parts and services, and household and sporting goods; franchisees run most of the locations....
Investors benefit from the company’s 503 Canadian Tire stores. They sell automotive parts and services, and household and sporting goods; franchisees run most of the locations....
Rising interest rates continue to weigh on the stock prices of Canadian Utilities LTD. and its parent firm ATCO. That’s because investors can now earn comparable yields from bonds with less risk. However, they pay more tax on interest income than dividends. As well, it’s possible that interest rates will decline in 2024, which should spur these high-quality utilities.
CANADIAN UTILITIES LTD....
CANADIAN UTILITIES LTD....
FINNING INTERNATIONAL INC., $36.86, Toronto symbol FTT, is a buy.
The company sells and services Caterpillar-brand heavy equipment in Western Canada, South America and the U.K.
With the June 2023 payment, Finning raised your quarterly dividend by 5.9%, to $0.25 a share from $0.236....
The company sells and services Caterpillar-brand heavy equipment in Western Canada, South America and the U.K.
With the June 2023 payment, Finning raised your quarterly dividend by 5.9%, to $0.25 a share from $0.236....
LINAMAR CORP., $65.43, Toronto symbol LNR, remains a buy for long-term gains.
The company makes a variety of automotive parts, including cylinder heads and cylinder blocks. It also makes self-propelled, scissor-type work platforms, under the Skyjack brand, as well as agricultural harvesting equipment.
Linamar is now buying the U.S.-based manufacturing operations of Mobex Fourth and 1, LLC....
The company makes a variety of automotive parts, including cylinder heads and cylinder blocks. It also makes self-propelled, scissor-type work platforms, under the Skyjack brand, as well as agricultural harvesting equipment.
Linamar is now buying the U.S.-based manufacturing operations of Mobex Fourth and 1, LLC....
ROYAL BANK OF CANADA, $124.12, Toronto symbol RY, is still a buy.
In November 2022, the bank agreed to pay $13.5 billion in cash for the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC). To put that cost in context, Royal’s market cap (the total value of all outstanding shares) is $172.3 billion.
HSBC operates 130 branches that mainly cater to businesses in industries that trade and bank internationally....
In November 2022, the bank agreed to pay $13.5 billion in cash for the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC). To put that cost in context, Royal’s market cap (the total value of all outstanding shares) is $172.3 billion.
HSBC operates 130 branches that mainly cater to businesses in industries that trade and bank internationally....
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....