Topic: How To Invest

Dividend Advisor Hotline – Friday, July 3, 2020

Article Excerpt

CANADIAN UTILITIES LTD. (class A non-voting) is a buy. The company, Toronto symbols CU [class A non-voting] $34.45 and CU.X [class B voting] $34.22, distributes electricity and natural gas in Alberta and Australia. It also holds all or part of 5 power plants—1 in Canada, 2 in Australia and 2 in Mexico. Starting with the March 2020 payment, Canadian Utilities raised its quarterly dividend for investors by 3.0%. Investors now receive $0.4354 a share instead of $0.4227. The new annual rate of $1.74 yields a high 5.1%. In 2017, Hurricane Maria destroyed most of Puerto Rico’s electric system. To help rebuild the power grid, the island’s government has selected Luma Energy—a 50/50 joint venture between Canadian Utilities and Quanta Services Inc. (New York symbol PWR)—to modernize and operate its transmission and distribution lines. Under this 15-year contract, the partners will receive $60 million U.S. in the first year ($30 million U.S. to Canadian Utilities). Annual payments then increase to a maximum of $105 million…

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