canadian utilities
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....
Canadian Utilities remains a great pick for income-seeking investors. In fact, in our TSI Dividend Advisor newsletter, the company earns our “Highest” Dividend Sustainability Rating. That measures how likely a company is to maintain—or, even better, keep raising—its dividend....
Utility stocks are shares in companies that provide services like electric power, telecommunications, and pipeline transportation. While most utility stocks are steady income producers, some utilities also offer opportunities for growth. This happens mostly when utilities expand into new markets or geographic regions.
Utility stocks, or ETFs holding those shares, should be a part of most well-balanced investor portfolios....
Utility stocks, or ETFs holding those shares, should be a part of most well-balanced investor portfolios....
BMO COVERED CALL UTILITIES ETF $12.37 (Toronto symbol ZWU) invests in Canadian and U.S. utility, pipeline, and telecommunications companies with what it sees as steady revenue streams; it also sells call options to enhance the yield on the portfolio.
The ETF, launched in October 2010, currently holds $1.0 billion of assets, and charges a somewhat high MER of 0.65%.
The fund has a very high 8.2% yield....
The ETF, launched in October 2010, currently holds $1.0 billion of assets, and charges a somewhat high MER of 0.65%.
The fund has a very high 8.2% yield....
CANADIAN UTILITIES LTD. $32 (class A non-voting) is a buy. The company (www.canadianutilities.com) 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....
Canadian Utilities and its parent company, ATCO, continue to simplify their operations. That’s good news, as investors prefer pure-play companies. Their quality businesses should also let them keep raising their dividends.
CANADIAN UTILITIES LTD....
CANADIAN UTILITIES LTD....
TC ENERGY CORP. $56 (www.tcenergy.com) is our #1 Income Buy for 2020. It’s likely incoming U.S. president Joe Biden will cancel the company’s proposed Keystone XL pipeline, which would pump crude from Alberta to U.S. Gulf Coast refineries. However, the company would probably use the materials set aside for Keystone XL on other projects....