Topic: How To Invest

Dividend Advisor Hotline – Friday, January 20, 2023

Article Excerpt

CANADIAN UTILITIES LTD. (class A non-voting) is a buy. The company (Toronto symbols CU [class A non-voting] $37.96 and CU.X [class B voting] $38.10) distributes electricity and natural gas in Alberta and Australia. It also owns or invests in 7 non-regulated power plants—1 in Canada, 2 in Mexico, 3 in Australia and 1 in Chile. ATCO (see below) owns 52.9% of the company. Canadian Utilities is now raising your quarterly dividend by 1.0%. Starting with the March 2023 payment, investors will receive $0.4486 a share instead of $0.4442. The new annual rate of $1.794 yields a high 4.7%. The company has now increased its dividend rate for 51 consecutive years. Investors should also note that Canadian Utilities lets you re-invest your dividends for additional shares (at up to a 5% discount on the market price) instead of cash. Canadian Utilities will probably earn $2.29 a share in 2023, and the stock trades at a moderate 16.6 times that estimate. Including this latest increase, Canadian Utilities…