Capital Power (CPX.TO)

Bit volatile, but sees upside. Very attractive value score of 9/10. Expects stock to rally as interests rates ease. Beat latest EPS. Up YTD 13%. Growth opportunities within the business model. Great dividend yield of almost 6%.

Fits into defensive thesis. Current valuation very low - great time to buy. Demand for stable electricity very high. Reliable dividend rate (~6%) is good for yield investors. New A.I. data centers will ensure demand for product. Good for long term investors. Strong management team. Business will be benefited with falling interest rates. 

Doesn't own stock. Would prefer company with better diversification in assets. However, strong business with good assets. Could be a good portion of business. 

Unloaded it, as growth rate is negative. Power prices have come down, costs have gone up. Going to get paid your dividend, with 6% growth. Not bad PE at 13.1x. Trying to get into data centres. He prefers ALA or GEI. EMA is a comparable utility with better growth and price to growth.

Likes recent US acquisitions. Excited about the power business because of AI. A lot more power will be demanded on the grid. Undervalued, time to buy. Yield is 6.5%, with plans to increase 5-6% over next couple of years. 

Lot more upside left.

It's the interest-rate sensitivity of it all. Utility names have all gone down aggressively, even his go-to names of BIP.UN and FTS. He prefers the growth profile of those 2, but nothing wrong with CPX. All are very undervalued, but strong dividend yields, so attractive for people looking for income.

It's a 315-basis point reset preferred, meaning a 315 point spread over whatever the Bank of Canada 5-year yield is then. Is a long-duration reset, resetting every 5 years. Pays a nice yield and like this company, but is a utility, a sector currently out of favour until interest rates decline. Good for the dividend, but a shorter reset period would be better.

Owns shares in company. Not adding to position, but comfortable holding. 5th largest power company in North America. Recent earnings strong. Alberta base with Ontario assets. Moving coal assets to natural gas power. Yield ~5% is very stable. Balance sheet is solid with a good proxy to bonds. Good combination of yield and growth prospects. 

Two different companies. CPX is a utility, with better income distribution and lower growth. CNQ has a nice dividend, but with better growth. What are you looking for? For income, pick CPX. For growth, pick CNQ.

At current levels, he'd stick with CPX for the dividend and potential upside. More potential for upside growth, less potential for downside risk.

Likes it. Nice base around $35.80. Trading in a tight range, breaking above. Looking at the little price movements and comparing it to volume, looks very strong. Might run into problems at $40. Pretty steady business. History of drops, but not huge drops or gains on any one day. Buy it for the dividend, not the upside. Get out if it hits $36. Yield is 6.4%.

Capital is definitely flowing to the other areas that are still working. Interest rates have hurt. Alberta power prices have not been constructive lately, a headwind. Payout ratio is 109% of 2025, so dividend's not as safe. No growth on forecast horizon, trading at 14.5x. 

Names like ALA and PPL are way better.

Excellent business franchise in Western Canada. Excellent management team with very good dividend. ~7% increase in dividend last year. Very big acquisition with Black Rock last year turning out very well. Now have 30 locations across North America. Very little maintenance expenditure for facilities turns into free cash flow. Debt levels low in comparison to sector peers. 

Tough year, along with other green-opportunity power producers. Some of that was unwarranted. Looking at it, but already owns so much in the space, like AQN. No problem with it at current levels. Yield is 6.6%. See his Top Picks.