Topic: How To Invest

Dividend Advisor Hotline – Friday, January 21, 2022

Article Excerpt

CANADIAN UTILITIES LTD. (class A non-voting) is a buy. The company (Toronto symbols CU [class A non-voting] $35.70 and CU.X [class B voting] $35.82) 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 (see below) owns 53.0% of the company. Between 2021 and 2023, Canadian Utilities plans to spend $2.3 billion on new projects. Those investments should increase its rate base (which regulators use to set power rates) from $14.0 billion in 2020 to $14.8 billion in 2023. Thanks to extra cash flow from those investments, Canadian Utilities is now raising your quarterly dividend by 1.0%. Starting with the March 2022 payment, investors will then receive $0.4442 a share instead of $0.4398. The new annual rate of $1.78 yields a high 5.0%. The company has increased its dividend rate for 50 consecutive years. Moreover, Canadian Utilities has re-instated its dividend re-investment plan. If you choose to participate, you…

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