Algonquin Power & Utilities Corp (AQN.TO)

(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.

Emera (EMA-T) Fortis (FTS-T) or Algonquin (AQN-T)? This is a space where there has been a lot of upward pressure this year, so it is very hard to find bargains. Of the larger utilities, he thinks Emera is the best price with the best dividend yield, so it would probably be his 1^st choice.

It is the renewable energy space and power/water utilities so only one side of the business is regulated. There are a lot more acquisitions yet to come. The dividend will continue to grow and there are organic growth prospects. It is a little pricey so buy it on dips.

The longer term chart does not show a big pull back. It is overbought and pulling back as usual. It looks good, but could pull back to $13.

He used to own it and did well, but now it is pretty standard. It has gone so much up from where he sold it and he is weary of it. It pays a nice dividend.

A utility stock? This has run up a lot, and he wouldn’t expect the same rate of return on a go forward basis. About half of this is power generation with about half being distribution. They have invested significant capital in the generation business.