Algonquin Power & Utilities Corp (AQN.TO)

Recently added this to his portfolio. Similar to Emera (EMA-T) or Fortis (FTS-T), it is in the power/utility space. Pays a yield of about 4.7%. They bought some assets in the US, so are diversifying their asset base a little. One thing with these defensive plays that are more yield oriented, the fear of interest rates has kind of gone up in the US, and stocks have come down a little. He can see 20% upside growth in this name.

(A Top Pick Jan 21/16. Up 12.07%.) At the time this was trading below its five-year average and below its peers. He chose it for its US exposure and its solid dividend. He saw good growth in EPS, and still sees that for the next couple of years. There is still much left to go. Trading at 23X 2016 earnings, but trading at 18X 2017. Dividend yield of 4.8%.

He sees pretty visible EPS growth of 18% this year and next from new projects and higher rate cases. Sees 8% annual dividend growth over the next couple of years. Their balance sheet is improving. It looks like the Empire deal is going to close sooner and it has a very strong US$ tailwind. Not expensive on a 2017 basis, and not expensive relative to its peers. Dividend yield of 4.77%.

This has 2 parts, renewable energy and distribution in the US. Very, very dependable revenue streams. The difficulty is that it tends to be viewed as a bond proxy, and people have been hiding in it, which could be a headwind for it.

They diversified into the US. They are continuing to grow. It has decent prospects going forward.

This is a name he likes, and is not sure why it has pulled back recently. Thinks it is a good, well-run business. Probably a solid one to continue Holding in your portfolio.

It has been a bit of a surprise. As interest rates have fallen, this one has been a laggard. That makes it value. He might consider it because it does tick the right kind of boxes. It has not done so well as of late.

(Market Call Minute.) This really doesn’t interest him very much at this point.

Another Canadian company that has been expanding in the US and undertaking acquisitions. Very good dividend growth prospects, at above 10% a year.

This is a utility, one of those hiding places. It gives you a decent yield. Higher lows and higher highs looks good. Make sure that you Buy this on a retracement.

A very well managed company. Took advantage of the acquisition opportunity in the US by buying a lot of regulated utilities to complement their power development projects. One of his favourite names. Getting a little more expensive, but there are some acquisitions that have not come through yet. A good name to own.

(Market Call Minute.) A great dividend stock. It has been doing very well cranking out cash flow.

Should continue to be an investor’s darling. They are predictable but with low rates of return. He feels confident when he likes these ones. The premium to invested capital is 27% which is at the top end for utilities. Nice dividend.

A good stock for a long-term hold. He really likes the recent acquisition they made. It basically has 2 business lines, regulated utilities and renewable power. The utility side is giving them a good credit rating and a good cost of capital. That gives them an advantage on the other side of the equation and allows them to bid on projects with a favourable outcome. Dividend yield of 4.5%.

Thinks this is a great company. Has a good yield and reasonable growth.