Utilities are a key part of a sound portfolio

Article Excerpt

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. And Canadian utility shares have always been great sources of tax-advantaged dividend income. Characteristics of the best utility investments The best utility stocks, or ETFs that hold them, can deliver predictable, sustainable dividends for investors. For instance, of the largest seven Canadian utilities, four have maintained of increased their dividends for at least 20 years, while two have done so for at least 10 years. Among the top seven, the only exception is Hydro One which only began publicly trading in late 2015. Apart from good current dividend yields, the best utility stocks have a long history of paying (and raising) their dividends. Meanwhile, for a..