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Highlights
- CPX stock surged by nearly 16 per cent in six months
- NPI stock zoomed by over eight per cent in the past six months
- Northland saw a significant rise of 90 per cent in its net profit in Q1 2022 compared to Q1 2021
Investors could explore quality TSX utility stocks like Capital Power (TSX: CPX) and Northland Power (TSX: NPI) amid uncertain market conditions to ensure stability in the near term and future.
The utility sector is often overlooked as it offers slower growth than other sectors. However, utility stocks are known to provide steady returns in the long run as they are supported by stable business models that provide robust earnings visibility in almost all economic conditions.
On that note, let us explore two TSX utility stocks.
Capital Power Corporation (TSX:CPX)
Capital Power said its electricity production grew to 6,893 Gigawatt hours (GWh) in Q1 FY2022 compared to 5,630 GWh a year ago. The electricity utility company reported a growing net profit of C$ 119 million in the first three months of 2022 compared to C$ 101 million in the same quarter a year ago.
CPX is set to dole out a quarterly dividend of C$ 0.547 on July 29. CPX stock surged by nearly 16 per cent in six months. As per EODHD/Others, CPX held a Relative Strength Index (RSI) of around 47 (moderate) at the time of writing on July 6.
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Northland Power Inc (TSX:NPI)
Northland Power reported a sales increase of 13 per cent year-over-year (YoY) to C$ 695 million in Q1 2022. The mid-cap utility firm saw a significant rise of 90 per cent in net profit to C$ 288 million in the latest quarter of Q1 2021.
Northland delivers monthly dividends and is scheduled to pay C$ 0.10 on July 15. NPI stock zoomed by over eight per cent in the past six months. According to EODHD/Others, Northland seems to be on a mixed trend, with an RSI of 56.19 on July 6.
Bottomline
Investors with a low-risk profile could consider Capital Power and Northland for the long term if seeking stability. Both these utility companies increased their profitability in the latest quarter and offer dividend income.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
