We like both the parent and subsidiary

Article Excerpt

CANADIAN UTILITIES LTD. (Toronto symbols CU [class A non-voting] $31 and CU.X [class B voting] $31; Income-Growth Portfolio, Utilities sector; Shares outstanding: 272.1 million; Market cap: $8.4 billion; Dividend yield: 5.1%; Dividend Sustainability Rating: Highest; www.canadianutilities.com) distributes electricity and natural gas in Alberta and Australia. It also holds all or part of 19 power plants­­—15 in Canada, 2 in Australia and 2 in Mexico. Regulated operations supply 99% of its earnings. ATCO Ltd. (see right) owns 52.4% of the company. Canadian Utilities last increased its quarterly dividend with the March 2018 payment. Investors now receive $0.3933 a share, up 10.1% from $0.3575. The new annual rate of $1.57 yields a high 5.1%. In December 2017, Canadian Utilities transferred its 24.5% stake in ATCO Structures & Logistics to the parent company. As a result, ATCO Ltd. now owns 100% of that business, which makes temporary buildings for construction, mining and energy exploration firms. Canadian Utilities received $140 million for its stake. If you exclude that sale and…

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