canadian utilities
Canadian Utilities and its parent company ATCO offer investors two ways to profit from the same high-quality assets. In fact, both stocks now pay the same dividend per share. However, income seekers should stick with Canadian Utilities. It’s focus on regulated businesses cuts its risk....
Central banks are keeping interest rates down in order to counter the negative effects of the COVID-19 pandemic. (The Supplement on page 69 offers you more info on how high deficits and low interest rates in the wake of the coronavirus will affect governments going forward.)
Utilities as a sector will benefit from the lower rates....
Utilities as a sector will benefit from the lower rates....
Canadian Utilities and its parent ATCO get most of their revenue from operations in Alberta. That adds to the risk for their investors as the province faces two big drags on its economy—COVID-19 and sharply lower oil prices. Even so, the high-quality regulated utilities held by these companies should continue to reward investors with strong income and rising dividends.
CANADIAN UTILITIES LTD....
CANADIAN UTILITIES LTD....
ENBRIDGE INC. $40 is a buy. The company (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 2.0 billion; Market cap: $80.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 8.1%; TSINetwork Rating: Above Average; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S....
These two utilities get nearly all of their cash flow from regulated power contracts. Both use that solid revenue to build up their operations, including cutting their reliance on fossil fuel projects. Those improvements should continue to fuel your long-term dividend increases.
EMERA INC....
EMERA INC....
Interest rate cuts in Canada and the U.S., along with coronavirus fears, will continue to hurt the performance of Great-West’s investment portfolio. The insurer relies on strong returns on those investments to help pay future claims. On the other hand, low rates should increase demand for IGM’s mutual funds....
Canadian Utilities and its parent ATCO rewarded investors with gains well over 20% this past year. That’s partly because low interest rates continue to spur demand for high-yield dividend payers. As well, Canadian Utilities’ recent asset sales improve the outlook for both firms....
Canadian Utilities and parent company ATCO give investors two ways to buy essentially the same businesses. Still, income seekers should pick Canadian Utilities for its impressive dividend, while value investors should go with ATCO for its more modest p/e.
CANADIAN UTILITIES LTD....
CANADIAN UTILITIES LTD....
Canadian Utilities recently sold its 12 fossil fuel-fired plants in Canada, plus other non-core assets. The company will likely reinvest the proceeds in new businesses. That will further enhance value for its investors, but also for the shareholders of its parent company, ATCO.
We like both stocks, but CU’s higher dividend and yield make it a better buy for income-seeking investors.
CANADIAN UTILITIES LTD....
We like both stocks, but CU’s higher dividend and yield make it a better buy for income-seeking investors.
CANADIAN UTILITIES LTD....
Canadian Utilities recently completed a strategic review of its power operations to find ways to increase investor value. As a result, it has now raised $835 million through the sale of 12 fossil fuel-fired plants in Canada, plus other non-core assets.
The company will spend some of the cash on new projects to spur dividends for both its own investors well as shareholders of its parent company, ATCO....
The company will spend some of the cash on new projects to spur dividends for both its own investors well as shareholders of its parent company, ATCO....