canadian utilities

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.

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

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

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....

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....

PROCTER & GAMBLE CO., $166.91, New York symbol PG, is a buy.

The company is one of the world’s largest makers of household and personal-care goods. Major brands include Tide (laundry detergent), Pampers (diapers), Gillette (razors), Crest (toothpaste) and Vicks (cold remedies).

Procter will now raise your quarterly dividend by 5.0%....

CANADIAN PACIFIC KANSAS CITY LTD., $99.86, Toronto symbol CP, is still a buy for long-term gains.

The company took its current form in April 2023 when it acquired U.S.-based railway Kansas City Southern (KCS).

CP paid $31 billion U.S. in cash and shares for KCS....

Global equity markets made modest further gains in February—although the magnificent seven U.S. companies (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla) dragged the U.S. market down. Bonds had a good month as interest rates moved lower. Interest rates sensitive equities, such as utilities and REITs also moved higher.


China equities (Toronto symbol ZCH) had a strong month on hopes for a more market friendly approach from the government....