Crius Energy Trust (KWH.UN-T)

Shares are seeing a big drawdown driven by fear. But their recent quarter was good with revenues up and dispelled some of those concerns. Pays a 13% yield, with 4x cash flow. The yield is a red flag. Maybe 8% is appropriate.

Just energy vs. Crius Energy Trust: Similar companies, valuations and dividends. He prefers Crius because he knows it better and are shifting their client portfolio to more commercial and higher-margin companies. He likes this shift.

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%.

The high 11.6% dividend scares him. It could be adjusted. That said, he'd buy it. It turned when energy fell then flattened. KWH itself is in an interesting spot. Buy or hold.

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.

It is a higher risk income stock. They sell energy contracts that you can lock into. They have to make more customers than they lose. Their recent quarter looked good and alleviated a lot of concerns that existed with the company.

Disappointing quarter, so the share price dropped. Dividend is well-covered, though it's over 10%. Some growth would help them.

(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.

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%.

He likes it and it is a great income generator. It went down 10% on a downgrade in terms of customer acquisitions. The distribution is nice. They increased the dividend recently and have done so on a regular basis. Investors are nervous on this company.

He likes it for income. They increased their reserves last conference call. Investors took this harshly and the stock came off. It has been a good performer and is growing nicely. It is not going to be super high growth, but has a 9.2% yield.

He likes this and holds it in their model income portfolio. It has about a 7%-8% distribution right now, which is very attractive. Even if the stock does nothing, you are still making 8%. The payout looks fine. They are growing their distribution at about 5% per quarter currently. Payout ratio is about 70%-80%. They acquired a US company, US Gas & Electric, that looks good and will add more growth.

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.)

Fixed price energy contracts door to door. It has done fairly well. The turn in terms of their clients is so high, though. He does not feel that comfortable with them. 8% yield and do people really believe it?