Canadian Utilities (CU.TO)

Growth potential is mid-single digits. The utility sector is very interest rate sensitive. The cash flows are very stable and so you should buy this sector if you think rates are going to remain relatively stable. People rotate out of this when interest rates go up.

(Top Pick May 21/14, Down 2.96%) It is always the forgotten utility company. It has such a long track record of increasing its dividend. This company has big mid stream assets and a few years ago they mulled over spinning these assets out. He does not think investors fully realize what happens if they do this. He thinks there is still potential for them to do this.

The utility sector is relatively less attractive to him right now. He expects a short-term interest rate increase in the US in the next few months. This one is very interest rate sensitive. He would be more inclined to find something that was a little bit more economically sensitive. If you are looking for dividends, you could look at some of the financials in the US where there is going to be some pretty good dividend growth. He would suggest looking at J.P. Morgan (JPM-N) where the currency is going to help you and you are going to get faster dividend growth. This is a sector that people really care about right now.

It pays and increases a good dividend. Valuation will not grow substantially. It is very stable and profitable. This one is how you get rich over time.

We are in the later third of the bull market and there is a concern of a correction. They have increased the dividend for 44 years in a row. They have projects to keep their growth going. They have the lowest valuation of all the other pipelines, etc.

(Top Pick Oct 21/13, Up 4.25%) Nice and defensive if you need the income.

(A Top Pick Oct 31/13. Up 5.89%.) The interest sensitives have just not been the market darlings up until about Sept 19th, when these were the stocks that did not go down with the market.

AltaLink needs transmission lines and this company has them. He sees catalysts for the stock. Meanwhile it is a dividend aristocrat. Has raised its dividend every year for 30+ years. Smart family that owns a huge stake. This is the cheapest of the utilities. Yield of 2.7%.

Thinks it could go back to last April’s pricing. Trading at about 15.3% versus their peers at around 17%. Earnings almost doubled year-over-year which, for a utility segment, is almost unheard of. Sees further growth but not at the same pace but that growth should continue to drive dividend growth. A lot of exciting things can happen in their power and midstream businesses.

Really likes this. A utility power generator. Have big growth plans and they don’t need as much capital as some of the other names. Good family insider ownership. Good track record of increasing dividends. Valuation is cheaper than all of the other pipeline and utility names. 2.7% dividend payout.

Always considered this one as a growth utility company, so fundamentally it looks okay. On the technical side, it is basically in a trading range. Underperforming the TSX right now and is below its 20 day moving average. If you’re looking for growth, this is probably not one of the better opportunities, but if you are looking for dividend yield, this is probably going to be okay for you.

A great stock with a lot of growth. The type of growth they have is pretty unmatched in the regulated utilities space. He sees further strong growth continuing but not at the same level that they had over the last year. Trades at discount to its peers. His target is $44.

Great record of steady earnings and dividend increases. For a utility company it is impressive how they have been able to grow their earnings. Has a tremendous demand from Fort McMurray and its growing population that it has to meet, which is a big opportunity for it. Thinks it has raised its dividend 13 of the last 14 years.

(A Top Pick August 27/12. Down 4.65%.) 4.9%, Series AA. All 3 picks are down because over the summer, there was a perfect storm of events including 1) the tapering, 2) index rebalances in preferred shares (ETFs must exchange their holdings), which drove prices down and 3) in August there was a program trade go through which drove them down even further. A solid company. Real bargain at these levels.

Exited. It had had a fantastic run over the last 5 years. The dividend yield had gotten down below 3% even though they had grown it.