canadian utilities

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....

Surging electricity demand, attractive valuations, and potential interest rate cuts are a few reasons to invest in utility stocks.

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.

Utility investments typically benefit from stronger economic activity, and a top Canadian utilities ETF will let you take advantage of this.

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. $55 last raised your quarterly dividend with the March 2026 payment. Investors now receive $0.4623 a share, up 1.0% from $0.4577. The new annual rate of $1.849 yields a high 3.4%. The company has now increased its dividend rate for 54 consecutive years.

The company has started building its 230-kilometre Yellowhead Mainline pipeline, which would pump natural gas from Edmonton to Fort Saskatchewan, just northeast of the city.

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.

Use tax-loss selling to offset your taxable capital gains in Canada. Learn more about a tax-loss selling strategy you can use.

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....