Brendan CaldwellCapital PowerCPX.TOPAST TOP PICKMay 12, 2023

Excellent business franchise in Western Canada. Excellent management team with very good dividend. ~7% increase in dividend last year. Very big acquisition with Black Rock last year turning out very well. Now have 30 locations across North America. Very little maintenance expenditure for facilities turns into free cash flow. Debt levels low in comparison to sector peers. 

Tough year, along with other green-opportunity power producers. Some of that was unwarranted. Looking at it, but already owns so much in the space, like AQN. No problem with it at current levels. Yield is 6.6%. See his Top Picks.

One of key holdings. Very strong company. Recently increased dividend. Decline in stock price due to higher interest rates. If rates fall, expecting stock to appreciate. Will continue to grow through M&A. Also has strong green energy segment within company. 

14.5x PE, versus Hydro One at 17-18x. Great dividend, but payout ratio is high at 109%. Need to consider anticipated EPS growth rate, and this one's flat. Favourable acquisition. Decent. But ALA is the clear winner on PE and price to growth.

Excellent business model. Currently in the middle of positive M&A. 6.6% dividend yield very safe. As rates fall, will see company share price rice. Sees excellent growth going forward. Has been buying shares recently, and will continue to hold. 

Recent acquisition of gas plants in USA. Recent deal accretive. Believes room for further growth. Recent sell off creating buying opportunity. P/E ratio around 13 a good time to buy. Expecting a share price around $40. Would recommend buying. 

It has been a victim of merciless interest rates. Have many operations in Alberta and doing well. Today, two companies including Blackrock, have announced a deal to buy two US gas-powered plants. He still likes it.

We consider it an OK stock: not the best, but certainly priced well to reflect this, at barely 7X earnings. EPS is expected to fall nearly 30% next year which tempers our enthusiasm. Lower rates (if and when) should help the stock and the overall sector. 
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The market now likes growth as opposed to dividend stocks but dividend stocks are still good for the longer term.

In renewables, but more on the utilities side. So while he's offloaded some renewables, he's held onto this one. Has renewable assets through the States. Recent cost overrun of about 23%, but they can still absorb the cost with what's happening with power prices in Alberta.

It is at a reasonable valuation and beat in Q1. Its assets in Alberta are good and its dividend is safe. Growth is falling.

Great dividend yield of about 5.7%. Issues with solar subsidiaries. Weaker guidance for 2023. Alberta power prices should be weaker this quarter. Great company, should continue to do well. Pick it up here, stock should do better.

He targets $45.87 and pays a good 5.75% yield. It earns more than its dividend. Shocking. It has pulled back. If it breaks $42.25, shares will go lower. What will happen to interest rates? Buy a little, but exit at $42.25.