atco
The Bank of Canada recently raised its benchmark interest rate, from 0.5% to 1.0%, in response to rising inflation. It also signalled more hikes are likely in the coming months.
Generally, rising interest rates are bad news for high-yielding utility stocks, such as the three we analyze below....
Generally, rising interest rates are bad news for high-yielding utility stocks, such as the three we analyze below....
METRO INC., $69.82, Toronto symbol MRU, remains a buy.
The company operates 950 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick.
To offset rising costs for labour and the impact of COVID-19 on its supply chains, Metro continues to raise its selling prices.
In the company’s fiscal 2022 second quarter, ended March 12, 2022, its overall sales rose 1.9%, to $4.27 billion from $4.19 billion a year earlier....
The company operates 950 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick.
To offset rising costs for labour and the impact of COVID-19 on its supply chains, Metro continues to raise its selling prices.
In the company’s fiscal 2022 second quarter, ended March 12, 2022, its overall sales rose 1.9%, to $4.27 billion from $4.19 billion a year earlier....
Canada’s federal government recently announced new greenhouse gas (GHG) reduction targets. Those include cutting emissions from oil and gas producers by 42% before 2031. That new target is more aggressive than Suncor’s or Imperial Oil’s own plan. Even so, meeting it is unlikely to severely impact their earnings considering the government will help offset their costs for new carbon-reduction technologies....
ROYAL BANK OF CANADA, $140.37, Toronto symbol RY, is a buy.
Royal continues to benefit from higher loan demand from consumers and businesses as the economy recovers from COVID-19 lockdowns. Rising stock markets also boosted results at its wealth management division.
In the bank’s first quarter of fiscal 2022, ended January 31, 2022, earnings rose 6.4%, to $4.10 billion from $3.85 billion....
Royal continues to benefit from higher loan demand from consumers and businesses as the economy recovers from COVID-19 lockdowns. Rising stock markets also boosted results at its wealth management division.
In the bank’s first quarter of fiscal 2022, ended January 31, 2022, earnings rose 6.4%, to $4.10 billion from $3.85 billion....
Canadian Utilities and its parent ATCO have some of the longest track records among Canadian stocks for annual dividend increases. That’s because each taps the same high-quality utilities. ATCO also offers you a way to buy those assets at a discount.
CANADIAN UTILITIES LTD....
CANADIAN UTILITIES LTD. (class A non-voting) is a buy.
The company (Toronto symbols CU [class A non-voting] $35.70 and CU.X [class B voting] $35.82) distributes electricity and natural gas in Alberta and Australia. It also has 5 power plants—1 in Canada, 2 in Australia and 2 in Mexico....
The company (Toronto symbols CU [class A non-voting] $35.70 and CU.X [class B voting] $35.82) distributes electricity and natural gas in Alberta and Australia. It also has 5 power plants—1 in Canada, 2 in Australia and 2 in Mexico....
Utility stocks are some the best stocks to own for dividend investors. That’s because their regulated operations generate predicable cash flows. TC Energy and Canadian Utilities’ new projects also set the stage for more dividend increases in 2022 and the years to follow.
TC ENERGY CORP....
TC ENERGY CORP....
Alberta’s high COVID-19 infection rates and Ottawa’s plans to cut emissions at the province’s oil producers could hurt electricity sales at Canadian Utilities and its parent company ATCO. However, recent investments in renewable power projects help cut that risk....
Although it looks like interest rates will start moving up again in 2022, we continue to prefer high-quality utility stocks over holding bonds.
The four utility stocks below are top alternatives to bonds given their long track records of increasing their dividends even as rising interest rates hurt the value of bonds....
The four utility stocks below are top alternatives to bonds given their long track records of increasing their dividends even as rising interest rates hurt the value of bonds....
We continue to recommend income-seeking investors stick with high-quality utilities (like the three we review below) instead of bonds. That’s because the increasing likelihood of rising interest rates in the next few years would hurt bond prices.
While utilities would also have to refinance their maturing debt at higher rates, regulators would probably let them pass along most of those costs to their customers....
While utilities would also have to refinance their maturing debt at higher rates, regulators would probably let them pass along most of those costs to their customers....