Canadian Utilities (CU.TO)

(Market Call Minute.) Great, well managed company. Very solid platform. History of raising dividends. Expensive, but he is still buying it.

(Top Pick Nov 21/11, Up 15.42% Total Return) The valuation is too cheap. Thinks he will see a dividend increase next year.

Great company. Carried a lot of cash for a long time and have spent a lot of that cash in Australia, which he thinks is a brilliant move. Good utility.

Buy a stock such as this that would benefit from continuing low interest rates but also by Sun Life (SLF-T) that would go up with interest rates and collect dividends from both. Good Hedging Strategy? You just explained the benefits of having a diversified portfolio. Good strategy, but you have to be careful that in this 3^rd quarter, Sun Life is going to have an actuarial review and might have to take down another charge.

(Market Call Minute.) The utility group as a whole has been correcting recently. Dividend growth is more attractive than high dividends that don’t grow and utilities have a little less dividend growth.

Interesting company. His biggest concern is the utility group being exposed to any movement in interest rates. For instance, the junk bond index spreads hit a 10 year low in the last week or so. Although this one has a lower yield, it could be a safer place to be compared to some with a higher yield.

At what point do you sell: Has anything changed in the story? Not much. What is better? You might find something you want to buy. CU fits the income and growth mold. Look at it at on after-tax basis. A backbone company. They have monopoly. Pays you while you are waiting. A good name to own.

Preferred D 4.9% series AA. This is a straight longer-term preferred share. Has an earlier redemption feature at $26 in 2017.