Regulated assets support their dividends

Rising interest rates are generally bad news for utility stocks, as they increase their borrowing costs at the same time they make bonds more attractive to investors who might otherwise invest in utilities. However, steady cash flows from Canadian Utilities’ regulated businesses will let it… Read More

Big drop in April for many stock

Aggressive talk of further interest rate increases by the U.S. Federal Reserve Chairman Jerome Powell contributed to the big drop for stock markets in April. Rising inflation is the main reason that the Fed plans to keep raising rates.
Growth stocks, especially those with only remote… Read More

Utilities offer you income and growth

Utilities could suffer more than other sectors as interest rates further rise. That’s because they have a lot of debt, and higher rates make it more expensive to raise money and refinance existing debt. As well, their shares, which typically offer high yields, compete with… Read More

Three solid picks for income seekers

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… Read More