Recent Buy – Canadian Utilities

On January 23rd I purchased 75 shares of Canadian Utilities (CU.TO) for 33,33 C$ per share. The total cost of the purchase was 1 668 €

Overview

Canadian Utilities Limited is a Canada-based worldwide organization of companies with assets of 21 billion C$ and approximately 5200 employees. 

Main three business divisions of Canadian Utilities are:

  • Electricity (power generation, transmission and distribution of electricity)
  • Pipelines and Liquids (transmission and distribution of natural gas)
  • Retail Energy

Stock

I found mixed statistics from different sources, so I decided to calculate P/E and payout ratios with the estimated EPS:

  • Sector: Utilities
  • Estimated EPS (2019): 2,23 C$
  • P/E Ratio: 14,9 (with estimated EPS)
  • Beta: 0,37
  • Yield: Pays a quarterly dividend of 0,4277 C$ per share which equals 5,13 % yield.
  • Payout ratio: Dividend payout ratio is 77 % (with estimated EPS).
  • Dividend History: CU.TO is a dividend aristocrat with 47 consecutive years of dividend growth.
  • Dividend Growth Rate: Average dividend growth rate for the past five years is 10,2 %. They recently announced a 7,5 % dividend increase.

Summary

CU.TO is a new stock in my portfolio. With current yield it increases my annual passive income by 83,2 €. After the purchase weight of CU.TO is 2,3 % of my portfolio.

Have you purchased any stocks this month? What do you think about this buy? Please share your thoughts in the comment section below!

Thanks for reading.

4 thoughts on “Recent Buy – Canadian Utilities

    • Dividend Deluge Post authorReply

      Thanks for the comment Frankie! I have purchasing more defensive companies in the past year, because I don’t want to be too heavily invested in cyclical companies when the next economical depression arrives.

    • Dividend Deluge Post authorReply

      I would love to add more Canadian stocks in the future. I will keep my eye on your purchases, because I am sure you have more knowledge about Canadian stocks than I do!

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