Topic: How To Invest

Dividend Advisor Hotline – Friday, January 22, 2021

Article Excerpt

CANADIAN UTILITIES LTD. (class A non-voting) is a buy. The company (Toronto symbols CU [class A non-voting] $32.11 and CU.X [class B voting] $32.10) 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 52.2% of the company. Due to COVID-19’s impact on oil prices and the Alberta economy, Canadian Utilities will defer a planned increase in its electricity and natural gas distribution rates in that province. Still, the company’s cash flow remains steady, and Canadian Utilities will now increase its quarterly dividend by 1.0%. Starting with the March 2021 payment, investors will receive $0.4398 a share instead of $0.4354. The company’s new annual dividend rate of $1.76 yields a high 5.5%. Canadian Utilities has raised its dividend each year since 1972. That payment has now increased an average of 6.2% annually in the past 5 years. The stock’s TSI Dividend Sustainability Rating is Highest. Canadian Utilities…