The Panic-Proof Portfolio (Stockchase Research) Canadian Utilities Preferred 4.6% Perpetual CIU.PR.A-T TOP PICK Feb 13, 2024

The parent company, CU, is a diversified utility provider that trades at 15x earnings and under 2x book value.  The company has been prudently using cash to aggressively retire debt.  The preferred shares -- with a high credit rating (Pfd-2) -- have declined below their $25 par value, due to rising interest rates.  This affords upside opportunity of 38%.  We recommend placing a stop-loss at $14.  Yield 6.6%  

We reiterate CIU.PR.A as a TOP PICK.  The parent company, CU, is a diversified utility provider that trades at 15x earnings and under 2x book value.  These perpetual preferred shares -- with a high credit rating (Pfd-2) -- have declined below their $25 par value, due to rising interest rates.  As interest rates stall and eventually decline, they will see a some good capital gains.  This affords upside opportunity over 30 along with a great yield.  We recommend maintaining the stop at $14.  Yield 6.6% 

As the Canadian Central Bank suggests no further interest rates are likely necessary to curtail inflation, we reiterate preferred shares as a TOP PICK.  The parent, CU, is a diversified utility provider with a strong balance sheet.  We continue to recommend a stop-loss at $14, looking to achieve $25 -- upside potential over 40%.  Yield 6.7%

We again reiterate CIU.PR.A as a TOP PICK.  The parent, CU, is a diversified utility provider with a strong balance sheet.  We recommend maintaining the stop at $15, looking to achieve $25 -- upside potential over 35%.  Yield 6%

With central banks choosing to no longer increase interest rates, preferred shares are good value.  We again reiterate CIU.PR.A as a TOP PICK.  The parent, CU, is a diversified utility provider with a strong balance sheet.  We recommend maintaining the stop at $15, looking to achieve $25 -- upside potential of 40%.  Yield 6.5%

Canadian preferred shares still hold great upside value opportunities and pay a great dividend.  We reiterate this as a TOP PICK.  Canadian Utilities has over $22 billion in assets and operates energy related projects in Canada, Mexico, Australia and Puerto Rico.  We continue to recommend maintaining a stop at $15, looking to achieve $25 -- upside potential of 30%.  Yield 6.0%  

In times of uncertainty, holding high-quality dividend paying preferred shares is a good strategy.  We reiterate CIU as a TOP PICK as it is a well diversified utility in a safe market space.  We recommend trailing up the stop (from $15) to $18, looking to achieve $25 — upside potential of 25%.  Yield 5.7%