Canadian Utilities Preferred 4.6% Perpetual (CIU.PR.A.TO)

As the Canadian Central Bank suggests no further interest rates are likely necessary to curtail inflation, we reiterate preferred shares as a TOP PICK.  The parent, CU, is a diversified utility provider with a strong balance sheet.  We continue to recommend a stop-loss at $14, looking to achieve $25 -- upside potential over 40%.  Yield 6.7%

We reiterate CIU.PR.A as a TOP PICK.  The parent company, CU, is a diversified utility provider that trades at 15x earnings and under 2x book value.  These perpetual preferred shares -- with a high credit rating (Pfd-2) -- have declined below their $25 par value, due to rising interest rates.  As interest rates stall and eventually decline, they will see a some good capital gains.  This affords upside opportunity over 30 along with a great yield.  We recommend maintaining the stop at $14.  Yield 6.6% 

The parent company, CU, is a diversified utility provider that trades at 15x earnings and under 2x book value.  The company has been prudently using cash to aggressively retire debt.  The preferred shares -- with a high credit rating (Pfd-2) -- have declined below their $25 par value, due to rising interest rates.  This affords upside opportunity of 38%.  We recommend placing a stop-loss at $14.  Yield 6.6%