Enbridge raises its dividend again

Rising interest rates boost the appeal of bonds and so can hurt the share prices of competing high-yield utility stocks like Enbridge. It’s important to note, however, that bond investors must treat interest payments they receive as regular income. As a result, they pay higher… Read More

Updating your Income-Growth Payers: Fortis

FORTIS INC. $54 is a buy. The company (Toronto symbol FTS; Income-Growth Portfolio, Utilities sector; Shares outstanding: 490.6 million; Market cap: $26.5 billion; Dividend yield: 4.4%; Dividend Sustainability Rating: Highest; www.fortisinc.com) began supplying electricity to St. John’s, Newfoundland, in 1885. It is now the main power utility in that… Read More

Enbridge sells some assets

ENBRIDGE, $47.74, is a buy. The firm (Toronto symbol ENB; Shares outstanding: 2.1 billion; Market cap: $102.4 billion; TSINetwork Rating: Above Average; Dividend yield: 7.7%; www.enbridge.com) has agreed to sell its stakes in two joint ventures to its partner Pembina Pipeline.
Specifically, Pembina will acquire an additional 50.0% of… Read More

Valuation gap adds to telecoms’ appeal

Traditional telecommunications service providers, such as Telus and BCE, are trading at substantially lower valuations than other “infrastructure” type companies. This is not only true for Canadian companies, but also for U.S. and other similar companies in Europe.
Infrastructure-type companies such as telecommunications, pipeline, utility, and… Read More

Nice pickup for Pembina

PEMBINA PIPELINE, $46.00, is a buy. The company (Toronto symbol PPL; Shares outstanding: 549.4 million; Market cap: $25.1 billion; TSINetwork Rating: Average; Dividend yield: 5.8%; www.pembina.com) has now agreed to increase its stakes in two joint ventures it has with Enbridge Inc.
Pembina will acquire an additional 50.0% of the… Read More