Wednesday, January 31, 2018

Recent Buy - Canadian Utilities Limited (CU.TO)

On Monday January 29, I bought 30 shares of Canadian Utilities Limited at CA$ 35.65 per share plus commission.

Canadian Utilities Limited engages in the electricity, and pipelines and liquids businesses. It operates through Electricity, Pipelines & Liquids, and Corporate & Other segments. The Electricity segment engages in the generation, transmission, and distribution of electricity using coal, natural gas, hydroelectric, and wind resources, as well as related infrastructure development in Western Canada, Ontario, the Yukon, the Northwest Territories, and Australia. The Pipelines & Liquids segment is involved in the integrated natural gas transmission and distribution; energy storage; and related infrastructure development activities, as well as provision of industrial water solutions in Alberta, the Lloydminster area of Saskatchewan, Western Australia, and Mexico. It owns and operates approximately 9,400 kilometers of natural gas pipelines, 18 compressor sites, approximately 4,000 receipt and delivery points, and a salt cavern storage peaking facility located near Fort Saskatchewan, Alberta in Canada. The Corporate & Other segment engages in commercial real estate; and retail energy and natural gas businesses, as well as provides billing, payment processing, credit collection, and call center services. The company was incorporated in 1927 and is headquartered in Calgary, Canada. Canadian Utilities Limited operates as a subsidiary of ATCO Ltd.

CU is a member of Canadian Dividend All-Star List with a 45 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 10.2, 10.3 , 10.1 and 8.5. 

After the latest dividend increase announcement, which was at the start of this year, Canadian Utilities Limited now pays dividends of CA$ 0.3933 per share normally in March, June, September and December.

Details of my purchase:

Some ratings for CU:

    Yahoo:  Mean Recommendation 2.9, 1y Target Est CA$ 41.67
    Reuters: Mean Rating 2.86

At today's exchange rate, this purchase 30 shares of CU will increase € 23.00 (CA$ 35.16) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 11,495.00. With a purchase price CA$ 35.65 plus commission (CA$ 3.50) my starting yield on cost is 4.40%. After this acquisition, CU's weight of my portfolio is about 0.18% and its share of future annual dividend income is approximately 0.20%. My purpose is slowly to build up CU's share of my portfolio, if the price remains at these levels.

Click here to see my portfolio.

Full Disclosure: Long CU 

Thanks for stopping by!


  1. Nice hawk. I just started a position in them as well. Solid company at a good price currently.
    Keep stacking those stocks

  2. Solid buy! I don't own them (aside from in my index funds) but have had this company on my watchlist for some time.
    Good luck.

  3. Looks like a solid dividend stock. Nice buy.

  4. Hei Dividend Hawk, voisitko sanoa mitä osakevälittäjää käytät osakkeiden ostamiseen? Minä käytän Bank Nordeaa, mutta nordessa veloitetaan iso prosentti Kanadan osingoista.

  5. Great buy! Looks like an impressive company with amazing dividend history. Going to put this on my watchlist too.