Topic: How To Invest

Dividend Advisor Hotline – Friday, October 9, 2020

Article Excerpt

CANADIAN UTILITIES LTD., Toronto symbols CU [class A non-voting] $33.34 and CU.X [class B voting] $33.59, is a buy. The company distributes electricity and natural gas in Alberta and Australia. It also owns or invests in 5 power plants—1 in Canada, 2 in Australia and 2 in Mexico. ATCO Ltd. (Toronto symbols ACO.X and ACO.Y) owns 52.2% of the company. 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 5.2%. Canadian Utilities plans to buy the Pioneer Pipeline from Tidewater Midstream and Infrastructure Inc. and TransAlta Corp. (Toronto symbol TA). This agreement replaces an earlier deal to sell the pipeline to TC Energy Corp. (Toronto symbol TRP). Pioneer pumps natural gas from Drayton Valley, Alberta, to west of Edmonton. Canadian Utilities will integrate it with its existing network in the province. That will make it easier for power utilities…