AUS
NZ
UK
CA
USA
IND
Highlights
- Utility stocks are safe and stable investment option as utility services are widely used and have consistent demand.
- Regular dividend paid by utility companies is a bonus point to consider while making investment decisions.
- A utility stock mentioned here soared by almost 43 per cent year-to-date (YTD).
Utility stocks can be a safe and stable investment option as utility services are widely used and have consistent demand.
Regular dividend paid by utility companies can also be a bonus point to consider while making investment decisions.
Keeping in mind their defensive nature, let us explore some of the top utility stocks of 2021 in Canada.
Image source:© 2021 Kalkine Media®
1. AltaGas Ltd (TSX:ALA)
A Calgary, Alberta-headquartered energy infrastructure provider, AltaGas Ltd recorded a normalized net income of C$ 5 million in Q3 FY2021. Its normalized adjusted EBITDA grew by 15 per cent year-over-year (YoY) to C$ 244 million.
The utility company is scheduled for a monthly dividend payment of C$ 0.083 apiece on December 31.
ALA stock closed at C$ 26.75 apiece on Monday, December 20. The utility stock soared by almost 43 per cent year-to-date (YTD).
2. TransAlta Corporation (TSX:TA)
TransAlta Corporation, an independent power firm, saw its revenue surge to C$ 850 million in the third quarter of fiscal 2021, up from C$ 514 million in the same period a year ago.
The company announced to pay a quarterly dividend of C$ 0.05 apiece on April 1, 2022.
TA scrip closed at C$ 13.73 apiece on December 20. The utility scrip zoomed by nearly 42 per cent so far this year.
Also read: Why is Algonquin (AQN) stock gaining investors' attention in Canada?
3. Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)
Brookfield Infrastructure Partners owns and operates utility infrastructure assets in the Americas, Europe and the Asia Pacific.
The company reported a net income of US$ 413 million in the third quarter of fiscal 2021, up from US$ 5 million in the same quarter a year ago. It is expected to deliver a quarterly dividend of US$ 0.51 per share on December 31.
Stocks of Brookfield Infrastructure swelled by over 17 per cent on a YTD basis. Its stock closed at C$ 73.87 apiece on December 20.
4. Canadian Utilities Ltd (TSX:CU)
Canadian Utilities Ltd posted adjusted earnings of C$ 88 million in the third quarter of fiscal 2021, marking a YoY increase of C$ 12 million.
The utility firm invested C$ 252 million in the capital projects, including 86 per cent in regulated utilities in Q3 FY2021.
CU stock closed at C$ 36.42 apiece on December 20. The utility service provider delivered a YTD return of over 17 per cent.
5. Fortis Inc (TSX:FTS)
A utility transmitter and distributor, Fortis Inc recorded net earnings of C$ 295 million in the third quarter of FY2021. It is scheduled for a quarterly dividend pay-out of C$ 0.535 on March 1 next year.
FTS stock rose by nearly 17 per cent YTD. Its stock closed at C$ 60.72 apiece on December 20.
Bottom line
Utility stocks can be a haven for investors looking for stable growth and dividend income. However, they should note a company's operational and financial well-being beforehand to ensure stable dividend income and steady returns.
Also read: 5 top Canadian renewable stocks of 2021
