Algonquin Power & Utilities Corp (AQN.TO)

He does not know the seasonality. Utility stocks do well in the summer. We are in a trading range. We are testing close to the bottom. He would be a bit careful here. Utilities typically underperform the market about now. He is neutral.

The only bad thing is that most earnings are from the US, and the rising Cdn$ is hurting them a little. It has an excellent growth rate. He is looking at 16% EPS over the next couple of years. Trades at the same multiple as its peers, 17X. Has a 61% payout ratio. The Empire acquisition is proceeding very well. If you can get this in the $12 range, you should buy it.

A core position for a long time for him. He buys more on dips. They should be able to grow for many years to come. The dividend is in US$ and should continue to grow.

Canada has done an extremely good job of acquiring companies in the US in the utility sector. Something like 70% of this company’s earnings comes from the US. Management has done an excellent job. They have a target of increasing their dividend 10% per year over the next 5 years, and possibly longer. Dividend yield of 4.6%.

A very nice small-cap and has done very well. Continue holding this if you have it. It has a 4.4% dividend yield.

(Top Pick Oct 28/16, Up 18.83%) It will not do 18% in the next year. It is planning an acquisition. He predicts above average returns, however. It will be important to them to continue making acquisitions for growth.

Has had pretty decent capital appreciation and he expects it to continue. He bought one that paid a higher dividend.

It’s an acquirer, mostly in the US, for growth. There is a rumour they are about to make another acquisition. If so, then the stock goes higher eventually. It is a 3-5 year hold.

One of the smaller utilities, which he thinks means it could be taken out by one of the bigger ones. In the meantime, they have a good mix of energy producers. They are into the water side in the US as well as biotech. Dividend yield of about 4.5%.

With the overlay of clients that need yield and to get a yield that is growing in a rising interest rate environment, this is one of the few utilities that has the ability to grow its dividend, and has a fairly safe growth path. Dividend yield of 4.4%. (Analysts’ price target is $15.)

Long-term hold? One of the characteristics of a great investment is that it generates cash and grows that cash. For a young investor, this company would suit well. A wonderful stock to hold for the next 20-25 years. 4.6% dividend yield.

Cenovus Energy (CEV-T) or Algonquin Power (AQN-T) for long-term gains and dividends? All interest sensitive stocks in a rising interest rate environment tend to pull back, especially so in a sharply rising rate environment, which she does not anticipate in Canada. If we get these pullbacks and high-quality utilities, it is a good time to get in. If you want yield, this is definitely the stock to get into. Cenovus is an energy oil sands producer, whose cash flow is going to be largely predicated on what crude oil does.

This has done extremely well, partly because of their US acquisition and their ability to execute. As long as they continue on that path of being able to buy up things at reasonable prices and continue to squeeze synergies out of it, they should do well.

(A Top Pick June 15/16. Up 21.33%.) A growth utility. You want to have one that can make acquisitions, and this is what happened here. They made a good US acquisition and integrated it well. 4% yield and 8%-10% earnings growth.

Along with all the power producers in this space, this has seen a pretty nice rally. A good company with good assets, but you have to remember you are taking on a little more specific risk in something like this, versus a traditional rate based utility.