Capital Power (CPX.TO) Buy, Sell or Hold

Capital Power (CPX.TO)

62.56

-0.04 (0.06%)

as of Oct 16, 2026, 4:03:05 pm Market Open.

443 watching

DON'T BUY

A western focused energy distribution company. They would benefit when there is volatility in electricity pricing there. It is a great name to own long term but there are others he prefers.

WEAK BUY

Well-managed, but they had a hiccup when a few years ago when Alberta changed its environmental assessment on coal power plants. So CPX has to close two power plants and have since transformed them (well) into natural gas. Also, CPX operates in market-sensitive Alberta. In the end, CPX has done well. Doesn't trade expensively, so there's upside potential. Problem is, nobody knows power prices will react in Alberta. This is more of a utility. He is lukewarm on it. The whole sector is on sale, cheap, rife for a price upgrade.

DON'T BUY

Red flags: they're shifting away from coal energy--and this will take time--and their dependence on Alberta energy. Instead, buy AQN, which pays a regulated return, though buy on a pullback, and it's done a great job growing. AQN is his favourite in this space.

COMMENT

CPX vs. Transalta They're transitioning away from coal to natural gas, wind and solar.They've executed extremely well, but he prefers Transalta for its valuation--and Brookfield could buy Transalta. Both companies are well-run.

DON'T BUY

Power generation does not seem to attract the same multiples for investors are the same ratings from the credit issues, due to the variability in cash flows. It pays a good yield. He would not be putting capital in this space yet.

COMMENT

They consistently grow their dividend. They grow organically and by acquisition. Their recent weakness has been due to an attempted acquisition and would pay for that with a stock issue. Once this is cleared-up, then the cash flow will lead to a dividend increase. Pays a 6% yield.

COMMENT

He hasn't looked at this chart before. It was sideways for a long time, then broke out a little in fall 2018. Then, it consolidated and is now pulling back perhaps to its old breakout point of the high-$20s.

TOP PICK

A meat and potatoes business, trading at 16 times earnings, 5.7% dividend with a 7% growth in dividends yearly, and low payout ratio. Yield 5.7% (Analysts’ price target is $31.32)

COMMENT

Dividend is ok. He does not follow this name.

BUY

A defensive play? Their legacy business was coal-fired plants in Alberta, but today faces greening under the Notley government. So, CPX struck a deal with Notley to diversify assets away from those plants into more green power. They pay nearly a 7% yield, which is safe, covered by good cash flow. A good defensive stock.

PARTIAL SELL

Outperformed last year. Little growth here so not one of his favourites. Among stable utilities, he prefers Fortis and Emera--bigger with better reputations and dividend growth. Nothing wrong this this, but there are better stocks in this space. They had a good year in 2018, so take money here. Also the political picture in Albera looks murky (the Tories will likely replace the NDP), so coal-powered generation looks uncertain.

BUY

Safe dividend. Good balance sheet. 17x earnings. Headwinds coming with planned outages. Likes it.

BUY

Looks at it once in a while. Stock’s held up nicely in last little while. Dividend is there, and as investment firms raise cash, provides an opportunity. Cash flow should be maintained. An inflation hedge. Inflation gets passed on to end user, so cash flow is secure.

TOP PICK

It's the top-performing Canadian utility yet little known. Has momentum. You're paid a safe, big dividend pl;us modest price growth. It plays into the carbon tax. CPS's assets are gas, wind and solar which are higher-cost commodities to produce, so the carbon tax will hit traditional forms of energy and benefit CPX. He sees a 2-3% upside plus dividend. Pays over a 6% dividend.

BUY

He holds this in his dividend portfolio. Its yield is over 6% and it has room to grow with the Alberta recovery. He described this as the kind of stock that he prefers to Algonquin Power and Utility (AQN-T).

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Capital Power (CPX.TO)