Here’s a stable power trust buy

Article Excerpt

CAPITAL POWER INCOME L.P. $17.78 (Toronto symbol CPA.UN; Shares outstanding: 53.9 million; Market cap: $958.3 million; SI Rating: Extra Risk; Dividend yield: 9.9%) is the new name of Epcor Power L.P. The change was made because Capital Power Corporation (Toronto symbol CPX) bought Epcor Utilities’ controlling interest in Epcor Power L.P. Capital Power Income has stakes in 26 power plants in Canada and the U.S. These facilities generate a total of 1,502 megawatts. In the three months ended December 31, 2009, Capital Power Income’s revenue rose 33.1%, to $138.2 million from $103.8 million. Favourable foreign-exchange rates were the main reason for the increase. Cash flow per unit rose 1.6%, to $0.65 from $0.64. Capital Power Income believes it can sustain its $0.1466-per-unit monthly distribution, regardless of whether it remains an income trust or converts to a corporation in 2011. That’s when Ottawa’s new trust tax takes effect. Capital Power Income yields 9.9%. The trust pays out just 76% of its cash flow to unitholders…