Canadian Utilities

Ticker: CDUUF, Buy below $25.

Canadian Utilities is a globally diversified utilities company headquartered in Canada.

Why I Would Buy

  1. Dividend – 5. 5% yield, <60% payout ratio.   
  2. Credit Rating – Investment grade long-term credit ratings (A- S&P, A DBRS).
  3. Defensive Industry – Power generation, electric powerlines, energy pipelines, water infrastructure etc.

What Could Go Wrong

  1. Expensive – Forward P/E 17+.
  2. Earnings Decline – YoY decline in earnings
  3. Expanding Float – Share count increasing.

Disclosure: I am long CDUUF, please read additional disclosures here before taking any action based on this post.