TOP CANADIAN UTILITY STOCKS TO BUY IN 2022 - YouTube

what's up guys it's wiz welcome back to the  channel if you're new i'm a kidney investor i  

cover a whole lot of information about investing  in canada and do research darkening market i  

dive into growth investing div investing  and canadian small cap slash penny stocks  

today i'll be going over canadian utility stocks i  wanted to showcase some of the top picks for this  

sector we will also be talking about  the dividends each company offers  

for new investors you need to join well simple  trade if you're looking to start investing and  

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you get two free stocks worth up to forty five  hundred dollars so you do not miss out on that  

canadian utility stocks are considered a  staple in k investment portfolios they provide  

stability i've mentioned this a number of times  before but canadian utility stocks operate in a  

highly regulated environment one that provides  consistent revenues that lead to fewer losses  

in the end this lowers the overall volatility of  killing utility stocks getting utility stocks also  

often provide excellent dividends most of these  companies are established and are considered  

pillars in the industry as such they are able  to reward shareholders in the form of high and  

consistent dividends utility companies are in an  excellent position to outperform over the long  

term and these companies should have  a place in every canadian portfolio  

utility companies primarily deal with things like  electric transmission electricity generation and  

energy infrastructure for this reason their cash  flow is considered extremely reliable as a result  

utility stocks will more than likely form the core  of many investors portfolios when times get hard  

and the market gets volatile they have proven  to be capable of resisting market turbulence  

so let's get to canada's top utility companies  to look at in 2022 keep in mind these companies  

are in no particular order and each provides  a great investment opportunity for canadians  

let's start off with foreign fts the company  is one of the top 15 utility companies in north  

america and continues to serve its customers  with reliable clean and safe energy the company  

operates in three regions including canada  the united states and the caribbean countries  

fortis operates in the highly regulated canadian  utility sector and 99 of the company's earnings  

comes from regulated utilities a regulated  utility company is one that has complete  

control they own the meter box the power poles the  cables and even the power generation facilities  

as such there is little room for competition in  fact you could consider regulated utilities to be  

a legal monopoly however it is a monopoly that has  benefits for both the business and the consumer  

fortis organizes rates with the municipality  rates that lead to reasonable prices for consumers  

but most importantly guaranteed profits for  the supplier this is one of the most one of  

the primary reasons the company's earnings are so  predictable fortis is a staple in most canadian  

dividend investors portfolios and for good reason  it has raised dividends for 48 straight years with  

you know a 49th year coming up there's no doubt in  my mind that fortis will hit dividend king status  

which is 50 straight years of dividend growth  this makes it one of the most reliable companies  

in the country and now has a dividend yield in  the mid three percent rate the company targets  

six percent dividend growth and has achieved this  mark for the last three years in fact in recent  

years the company has managed to exceed that and  increase its dividend by six point seven percent  

annually overall i believe this is hands  down the best canadian utility stocks to  

own in the country today and maybe for the  foreseeable future in terms of valuation  

this company has never really been cheap you're  paying a premium for strong and reliable dividends  

great canadian stock to consider if you haven't  already next let's talk about algonquin power  

and utilities ticker symbol aqn algonquin is  a power generation and distribution company  

the company provides generation transmission  and distribution services including natural gas  

water and electricity to over 1 million customers  in the united states and canada algonquin is one  

of the fastest growing utility stocks managing to  consistently raise earnings by double digits and  

increasing its dividend if you're looking for a  renewable energy play algonquin is a clear winner  

the texas storms unfortunately put a damper  on what would have been a very solid year for  

algonquin in at 2021. this caused the stock price  to lag and ultimately it took a while to recover  

but throughout 2022 it has done so as sentiment  has returned to the renewable energy industry and  

the company is growing its assets and getting back  on track so much so that the analysis figure the  

company has been growing the top line by nearly  20 in 2022 and earnings by just over six percent  

now i know mid single digit earnings growth  doesn't sound that flashy however you won't  

find a canadian utility um with this high of  growth expectations unless you venture into  

small slash and micro caps especially one that  offers a dividend as good as algonquin it does the  

company provides a current yield of in the mid 4  range and has a payout ratio in terms of earnings  

of around 119 this payout ratio may look dangerous  however it's important to understand that this is  

on a ttm which is trailing 12 months basis which  includes some impacts to earnings in 2021 like i  

mentioned before the texas storms if the company  can generate expected earnings of 95 cents its  

annual dividend of around 87 cents is covered and  safe price wise the stock is starting to recover  

after a very poor 2021 but despite this increase  algonquin is trading trading well below its  

three five and ten year medium average when it  comes to forward price to earnings algonquin has  

been another utility company here in canada that  has consistently outperformed the index it's a  

great cleaning company to consider final company  i'll talk about is hydro one ticker symbol h hydro  

one is an electric utility company that primarily  operates in ontario canada the company serves over  

1.5 million residential and business customers  across the province the stock is backed heavily  

by the provincial government and hydro one's  generation methods are such that it is extremely  

hard for others to replicate making barriers  to entry extremely high they basically own the  

entire market in ontario the higher barriers to  entry the lesser chance company stands to close to  

lose market share in the end holding market share  leads to reliable revenue and a reliable dividend  

the company pays a respectable three percent  yield and unlike most other utility companies who  

are paying out more than 75 75 percent of earnings  towards the dividend hydro one comes in at just 65  

of its trailing 12 months earnings keep in mind  that the company became a keen dividend aristocrat  

last year which signals five plus years of  consecutive dividend growth it's important  

to note that hydro one large launched its ipo in  2015 so this dividend streak is pretty impressive  

since the company's ipo the stock has provided a  compound annual growth rate of 6.77 to investors  

this isn't necessarily world beating but once  you reinvest the dividends in receive the company  

has returned 10.65 annually since late 2015 this  one is the more impressive return in the utility  

sector hydro one isn't going to post exceptional  returns but is going to give you a strong dividend  

with a ton of room for growth and i like that in  utility company so you actually see the difference  

between you know the 6.7 annual growth weight  then when you consider the dividend per year it  

actually reaches now 10.69 percent annual growth  rate which is great for a utility company so  

it's a great cleaning stock to check out overall  kidney utility stocks are a great sector to build  

a core portfolio around the regulated nature  of the utility sector makes them astounding  

investments yes there are plenty of other  options for canadians to choose from like utility  

ticker symbol cu but of course i can't go over  them all i hope everyone understands that hope  

you guys enjoyed these king utility stocks please  watch my previous videos on kingstalker english  

let me know what any canadian companies you  want me to look into and give my opinion on  

let me know in the comments since i really want  to expand my own knowledge indicating market and  

you also expand your own knowledge by asking  questions if you did enjoy this video leaving  

a like it really helps grow the channel thanks  for watching i'll see you guys in the next video