Capital Power (CPX.TO)

Not a bad idea. Whole sector has done really well on AI themes. Issued equity at $58 to improve balance sheet for accretive M&A. Good company. Dividend's not what it was, as the price is so much higher. 

You can see from the chart that taking profits is wise, but TD may not be the best choice. Choose BMO instead.

Owns it in his income growth fund. Very good asset base, high regard for management. Excitement around potential of data centres. Getting extended, he trimmed by about 1/3 once it got over $50. Good hold for the dividend.

Without question, a parabolic chart. Nothing wrong with that (up is good, down is bad), but technical indicators on a weekly chart probably say it's pretty overbought. Look at the 200-day MA, and if the stock's too much over 15% then you know it's overbought. Doesn't mean that today it pulls back, but does mean that it's ripe. How much it pulls back is the question, could go sideways.

Be cautious as to how much more profitability in the near term.

Has done very well lately; not normal for a dividend-payer to march up like this. He's holding right now, but waiting to sell it off. Have to be very cautious if you buy, could lose 10-15% very quickly. Somewhat predictable. The 5-10 year chart has lots of volatility, but not like a tech stock. All-time, record highs; not a bad holding.

They have exposure to a data centre in Alberta, possibly a new hug for data centre energy. It's re-rated due to lower interest rates. These stocks are recovering and still are. Still room to run.

They have some interesting projects, like converting coal into natural gas (one in Alberta). Pay a 5% dividend. Are good for growth.

We would consider it a HOLD; FTS, BEPC and H we think look a bit better right now but we would not sell what is working well. 
Unlock Premium - Try 5i Free 

Near term, lots of $$ coming into utilities partly because of rate cuts. That's fine. Saw generational low interest rates in 2020, and we're going to see rates ratchet slowly higher for next 15-20 years. So inflation and rates are going to be stickier, making bond proxies harder longer term.

So you need to make sure you have dividend growth. Lean toward dividend growth, rather than high dividend but low growth. Good record of dividend growth, technicals are sound.

Excellent company. Dividend looks relatively safe at this point, with decent growth. Rate-cutting cycle will prop up dividends in general. Canadian operations are sound, and those outside Canada are extremely strong. Looks a bit expensive, but probably still has room to grow as rate cuts start rolling in.

Likes their strategy of buying natural gas assets which need a new contract, buying them at a low price. CPX has good performance and pays a high dividend. Supplying data centres is a tailwind.

If you're going to buy a utility, own something like this that's going to increase the dividend reliably. Has a 6% yield that grows consistently.