Both aim to build on your 20%-plus gain

Article Excerpt

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. Income seekers should pick Canadian Utilities for its higher dividend yield, while value investors should go with the cheaper ATCO. CANADIAN UTILITIES LTD. (class A non-voting) is a buy. The company (Toronto symbols CU [class A non-voting] $42 and CU.X [class B voting] $42; Income Portfolio, Utilities sector; Shares outstanding: 273.2 million; Market cap: $11.5 billion; Price-to-sales ratio: 2.8; Dividend yield: 4.1%; TSINetwork Rating: Above Average; 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. ATCO owns 52.2% of the company. It has handed investors a 25% gain in the last year. While that return is impressive, Canadian Utilities is also a terrific choice for income seekers. It has…

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