canadian

CANADIAN UTILITIES LTD., $31.09, Toronto symbol CU, (TSINetwork Rating: Above Average; www.canadianutilities.com) is a buy.

Canadian Utilities distributes electricity and natural gas in Alberta and Australia....

We see both Wajax and Calian rising even higher given their prospects and in-demand services. Meanwhile, they offer sustainable yields for investors. Both are buys.


WAJAX CORP., $31.57, is a buy. The company (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (www.wajax.ca; Shares outstanding: 21.5 million; Market cap: $682.1 million; Dividend yield: 4.4%) sells and services cranes, forklifts and other heavy equipment....

Unveiling the truth behind low volatility ETFs - a closer look at beta traps, beta scoring and its impact on investment decisions.

EMERA INC., $48.80, Toronto symbol EMA, is a buy.

The company owns 100% of Nova Scotia Power, that province’s main electricity supplier. It also owns 100% of Teco Energy, which supplies electricity and natural gas to 1.3 million customers in Tampa Bay, Florida....

CANADIAN NATIONAL RAILWAY CO. $172 (www.cn.ca) remains a buy. Canada’s largest railway has reached a new three-year contract agreement with the union representing 2,500 of its track and bridge employees....

Elevated interest rates and inflation continue to force CIBC to put aside higher amounts to cover potential loan defaults. However, actual loan losses remain small. As well, it looks like interest rates will come down in 2024, which will let it reverse some of those provisions....

High interest rates tend to increase the appeal of bonds and hurt the shares of high-quality utility stocks, including the four we analyze below. We feel they are particularly attractive buys right now as it looks like the Bank of Canada will cut interest rates later this year.


FORTIS INC....

GARMIN LTD., $137.43, is a buy. The company (symbol GRMN on Nasdaq) makes GPS devices and software for five different markets: fitness, outdoors, auto, aviation, and marine.

In the three months ended December 30, 2023, Garmin’s overall revenue rose 13.5%, to $1.48 billion from $1.31 billion a year earlier.

Sales in the marine segment rose 14%....

LOBLAW COMPANIES LTD., $145.13, Toronto symbol L, is a buy.

The company operates 1,104 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills.

In March 2014, it purchased the Shoppers Drug Mart chain for $12.3 billion in cash and shares....

ROYAL BANK OF CANADA, $131.94, Toronto symbol RY, is a buy.

Due to concerns over rising interest rates and inflation, Canada’s largest bank by market cap continues to set aside more funds to cover potential loan losses.

In its fiscal 2024 first quarter, ended January 31, 2024, loan-loss provisions jumped 52.8%, to $813 million from $532 million a year earlier.

That’s mainly why Royal’s earnings before unusual items in the quarter fell 5.0%, to $4.01 billion from $4.22 billion....