Canadian Utilities (CU.TO)

AltaLink needs transmission lines and this company has them. He sees catalysts for the stock. Meanwhile it is a dividend aristocrat. Has raised its dividend every year for 30+ years. Smart family that owns a huge stake. This is the cheapest of the utilities. Yield of 2.7%.

Thinks it could go back to last April’s pricing. Trading at about 15.3% versus their peers at around 17%. Earnings almost doubled year-over-year which, for a utility segment, is almost unheard of. Sees further growth but not at the same pace but that growth should continue to drive dividend growth. A lot of exciting things can happen in their power and midstream businesses.

Really likes this. A utility power generator. Have big growth plans and they don’t need as much capital as some of the other names. Good family insider ownership. Good track record of increasing dividends. Valuation is cheaper than all of the other pipeline and utility names. 2.7% dividend payout.

Always considered this one as a growth utility company, so fundamentally it looks okay. On the technical side, it is basically in a trading range. Underperforming the TSX right now and is below its 20 day moving average. If you’re looking for growth, this is probably not one of the better opportunities, but if you are looking for dividend yield, this is probably going to be okay for you.

A great stock with a lot of growth. The type of growth they have is pretty unmatched in the regulated utilities space. He sees further strong growth continuing but not at the same level that they had over the last year. Trades at discount to its peers. His target is $44.

Great record of steady earnings and dividend increases. For a utility company it is impressive how they have been able to grow their earnings. Has a tremendous demand from Fort McMurray and its growing population that it has to meet, which is a big opportunity for it. Thinks it has raised its dividend 13 of the last 14 years.

(A Top Pick August 27/12. Down 4.65%.) 4.9%, Series AA. All 3 picks are down because over the summer, there was a perfect storm of events including 1) the tapering, 2) index rebalances in preferred shares (ETFs must exchange their holdings), which drove prices down and 3) in August there was a program trade go through which drove them down even further. A solid company. Real bargain at these levels.

Exited. It had had a fantastic run over the last 5 years. The dividend yield had gotten down below 3% even though they had grown it.

(Market Call Minute.) Great, well managed company. Very solid platform. History of raising dividends. Expensive, but he is still buying it.

(Top Pick Nov 21/11, Up 15.42% Total Return) The valuation is too cheap. Thinks he will see a dividend increase next year.

Great company. Carried a lot of cash for a long time and have spent a lot of that cash in Australia, which he thinks is a brilliant move. Good utility.

Buy a stock such as this that would benefit from continuing low interest rates but also by Sun Life (SLF-T) that would go up with interest rates and collect dividends from both. Good Hedging Strategy? You just explained the benefits of having a diversified portfolio. Good strategy, but you have to be careful that in this 3^rd quarter, Sun Life is going to have an actuarial review and might have to take down another charge.

(Market Call Minute.) The utility group as a whole has been correcting recently. Dividend growth is more attractive than high dividends that don’t grow and utilities have a little less dividend growth.

Interesting company. His biggest concern is the utility group being exposed to any movement in interest rates. For instance, the junk bond index spreads hit a 10 year low in the last week or so. Although this one has a lower yield, it could be a safer place to be compared to some with a higher yield.

At what point do you sell: Has anything changed in the story? Not much. What is better? You might find something you want to buy. CU fits the income and growth mold. Look at it at on after-tax basis. A backbone company. They have monopoly. Pays you while you are waiting. A good name to own.