Canadian Utilities (CU.TO)

Has held this for very long time. 3.8% dividend yield. Very low risk.

Long-term hold? A regulated utility, mostly out West in Alberta. It hasn’t been as growthy as some of the other utility companies. An unbelievable dividend raiser. Good, insider ownership by a family that cares. If interest rates spike up, it is not going to be good for utility companies, but they are working on a lot of growth projects. This is a good investment here.

It is better than the rest of the utility space. His model price is $38.29, a 5%. It would not get hit if interest rates went up.

(Top Pick Dec 24/15, Up 13.70%) He also owns some of the preferreds. This is a pretty decent name within the utility sector, defensive and can withstand marginal rate increases. It is not too rich for his liking.

A classic Canadian utility, and thinks that this is probably one of the better ones. Undervalued. Great dividend yield.

Sometimes boring is good. This pays a dividend and raises it on a regular basis. He likes stocks like this for RESP’s. If your kids are little and you have a long time horizon, there is nothing better than sticking a couple of dividend growers in there. Enbridge (ENB-T) and Fortis (FTS-T) fall into much the same kind of category as a Canadian utility.

Scores well in terms of discount to intrinsic value on a price to cash flow multiple. Thinks there is a better discount and a better catalyst with some of its peers. (See Top Picks.)

He loves this company. It is a dividend grower, conservatively managed and a core holding of his. It is a conservative parking spot for people who are worried about the markets.

(Market Call Minute.) Hopefully Alberta is getting better, but this is the lowest yield of the group.

(A Top Pick June 18/15. Up 8.3%.) Thinks we are in a “lower for longer” interest rate environment, so he is not worried for too long about being in this space.

(Top Pick Mar 9/15, Down 11.20%) They hold the record for the most consecutive dividend increases. He plans to keep holding it. They just raised the dividend 10%. Hold this indefinitely.

It is unloved. He is picking away at it. It is a good place to get a 4% yield. They have transmission and distribution assets in Western Canada. There is little commodity price exposure. There is some capital appreciation potential as well as dividend growth.

He likes the company and he likes the big family ownership in it. They have a lot of assets that they are working on, both in Canada and Australia and transition lines. Wonderful dividend growth over the years, which he doesn’t see stopping anytime soon. Doesn’t think you can go too far wrong owning this.

This is a bit of a contrarian play. Everything has gone wrong for them. There was the oil collapse, an NDP victory in Alberta, rising yields recently which really soured sentiment. However, it has gotten to a level which he thinks is just too cheap to ignore. Trading at 14X 2016 earnings, versus the group at around 21. Thinks you will get your non-regulated assets for free, and yet they have multi-years of robust utility growth, regardless of what happens to the Alberta economy. Pristine balance sheet and low risk. Dividend yield of 3.35%.

Very well-managed with an extremely long track record of dividend increases every single year. They are spending $5-$6 billion on new investments in Alberta and Western Canada. This has suffered from concerns about a possible new tax regime and concerns about shutting down coal power plants. Valuation is very attractive compared to others. He sees an outburst of growth going forward. Below $40 is an absolute terrific buy.