Stock price when the opinion was issued
Does utility contracts for retail housing, etc. Just made a big acquisition of a US energy company. He likes the company. One of the risks is that they have high churn rates. So far, they’ve done a good job. Have been increasing the dividend fairly consistently and the distribution looks stable. It has some growth potential. They've entered the solar space as well. There is a lot to like here. He would buy this more for income than for growth. Dividend yield is 9%.
(A Top Pick Apr 11/17, Down 17%) A short report came out yesterday. It is a higher risk income stock. Around the 9% area. The usual concern is that they sell Nat gas contracts and there is a high customer churn. It is not a new story. That is just what they do. There is concern on their payout ratio. They just acquired a company in the US that should help boost their cash flows.
Just Energy vs. Crius: Just's chart hasn't performed well. It trades at a fair 5x EBITDA. Problem with these companies is that they're an energy marketers, but the market believes it better to own the client (producer), not the marketer. You're much better with Cruis: activist investors moved onto the board, better yield, less levereg.
The stock has been really weak and there has been no news to justify it. They raised the distribution in January and the payout ratio is still okay. It looks like sellers are selling only because it is down. He believes management and thinks it is okay – although does not like buying into negative momentum on price. Yield 13%.
This has been a dividend grower over the last year or 2, and plan to grow it in 2017 as well. Currently yielding 7.6%. Payout ratio is about 60%. Not much debt. They are also growing their top line. Their strategy is a bit different in that they use a white label approach. They partner with companies like Comcast (CMCSA-Q) in the US where a company already has a foot in the door. Even if the stock does nothing over the next year, you are still getting a good dividend. (Analysts’ price target is $11.50.)