Investing

Investing Idea - Dividend Growth

  • Last Updated:
  • Nov 19th, 2020 5:54 pm
Deal Addict
Mar 4, 2009
1743 posts
586 upvotes
Toronto
Which traditional utilities (eg. FTS, EMA, CU, H) do you guys own and why do you guys prefer one over another?
I know renewables (AQN, BEP.UN, etc.) is getting all the love but wouldn't be bad to hold few traditional utilities.

I am doing my own research but would be interested to hear your thoughts.
Rod's watch list has: ACO.X, CU, EMA, FTS, RNW, NPI

I didn't really want to create another thread but I can if needed.
Deal Addict
Feb 26, 2017
1684 posts
1764 upvotes
last_sd wrote: Which traditional utilities (eg. FTS, EMA, CU, H) do you guys own and why do you guys prefer one over another?
I know renewables (AQN, BEP.UN, etc.) is getting all the love but wouldn't be bad to hold few traditional utilities.

I am doing my own research but would be interested to hear your thoughts.
Rod's watch list has: ACO.X, CU, EMA, FTS, RNW, NPI

I didn't really want to create another thread but I can if needed.
I own, BIP, AQN, CU and CPX for utilities. Of the names you mentioned I'd like to pick up FTS at some point. FTS, AQN, EMA, H, RNW, NPI, BEP all look a bit and in some cases significantly overvalued to me.

I think CU and CPX look the best to me right now. CPX is a bit riskier but I think its getting overlooked as its power generation and has some coal and also gets most of revenue from Alberta. CU looks undervalued but its one of my least favorite stocks that I own as I bought it 3 years ago and I haven't made much on it. I'm holding but not adding as its doing what I want which is paying a growing dividend.
Deal Addict
Dec 20, 2018
3922 posts
3115 upvotes
last_sd wrote: Which traditional utilities (eg. FTS, EMA, CU, H) do you guys own and why do you guys prefer one over another?
I know renewables (AQN, BEP.UN, etc.) is getting all the love but wouldn't be bad to hold few traditional utilities.

I am doing my own research but would be interested to hear your thoughts.
Rod's watch list has: ACO.X, CU, EMA, FTS, RNW, NPI

I didn't really want to create another thread but I can if needed.
why not just buy ZUT and call it a day?
Deal Guru
Jan 27, 2006
14802 posts
7732 upvotes
Vancouver, BC
StatsGuy wrote: why not just buy ZUT and call it a day?
Because you can tailor your exposure to what you want how you want it! For example, let's say you want a slightly higher yield than what ZUT can provide. With ZUT, that's too bad for you. But if you buy the individual stocks, you can put a few extra dollars into higher-yielding ones. On the flip side, let's say you don't care as much about yield but really own it to play the renewables with the possible income Biden administration... then you can just purchase a bit more of the NPU, BEPs, and maybe a few US based ones like NEE.
Newbie
Jan 9, 2017
6 posts
3 upvotes
I took a look at ZUT, I think a few of their top holdings I will not buy.
Deal Addict
Feb 26, 2017
1684 posts
1764 upvotes
I didn't really know where to post this but found it interesting. I don't own REI but I think this is a good example of the value of Toronto real estate in good locations. I own SRU and I'm taking this as a good sign about the value of their Toronto and GTA properties. A 3.5% and 4.5% cap rate is really low.
RioCan has agreed to sell a 50% non-managing interest in its two income-producing
properties at the northeast corner of Yonge & Eglinton in midtown Toronto. The
$150.8mm sale price is in line with IFRS value and represents a 32% premium
over the $114.1mm RioCan paid a year ago to acquire the 50% interest that it did
not own from its developer partners. The sale price reflects stabilized capitalization
rates of 3.5% for the eCentral residential and 4.5% for the retail component, and also
shows no meaningful impact from COVID-19, in our view
Deal Addict
Oct 21, 2014
1475 posts
1819 upvotes
Burlington, ON
The strategy I'd like to see Riocan pursue is to start liquidating properties to exploit the difference between unit value and NAV. If they liquidated properties, say to a pension fund they could generate a lot of alpha and buy back shares. Their price to book is like 0.57.
Deal Addict
Feb 26, 2017
1684 posts
1764 upvotes
Gungnir wrote: The strategy I'd like to see Riocan pursue is to start liquidating properties to exploit the difference between unit value and NAV. If they liquidated properties, say to a pension fund they could generate a lot of alpha and buy back shares. Their price to book is like 0.57.
I think some other REITs have done this (I'm thinking Artis and Cominar did this but I don't closely follow either name). If its a significant portion of the portfolio its normally also combined with a distribution cut as dispositions lower FFO.
Deal Addict
Oct 21, 2014
1475 posts
1819 upvotes
Burlington, ON
Chance7652 wrote: I think some other REITs have done this (I'm thinking Artis and Cominar did this but I don't closely follow either name). If its a significant portion of the portfolio its normally also combined with a distribution cut as dispositions lower FFO.
I believe that Riocan liquidate the portfolio, shut down and return the capital to shareholders. To my mind there is something very, very wrong with management if someone can buy real estate on the open market for 57 cents on the dollar in a very low interest rate environment. There are buyers for their assets, and even if they only get 90 cents on the dollar it's the way to drive the most shareholder value.
Jr. Member
Oct 23, 2006
124 posts
41 upvotes
rodbarc wrote: I typically do at the beginning of every year, but will do it sooner because I already made some decisions on new names that I added to my list and some companies that I no longer partner with.

Been very busy with some other projects, but will post something soon.


Rod
Hi Rod - I am also eagerly looking forward to your updates.

Stay safe

Thx
Sr. Member
Oct 31, 2009
570 posts
101 upvotes
Has anyone already received their dividends from TD? I have both TD in my Virtual Brokers and Wealthsimple Trade and none has showed up yet.
Newbie
Sep 20, 2019
15 posts
23 upvotes
desertfox wrote: Has anyone already received their dividends from TD? I have both TD in my Virtual Brokers and Wealthsimple Trade and none has showed up yet.
not yet. also waiting for na and lb.
Deal Addict
User avatar
Oct 2, 2005
1654 posts
697 upvotes
desertfox wrote: Has anyone already received their dividends from TD? I have both TD in my Virtual Brokers and Wealthsimple Trade and none has showed up yet.
Yes. Its deposited in questrade.
Deal Addict
Nov 9, 2013
3946 posts
3639 upvotes
Edmonton, AB
desertfox wrote: Has anyone already received their dividends from TD? I have both TD in my Virtual Brokers and Wealthsimple Trade and none has showed up yet.
Yes - with RBC DI
Keep calm and go long
Deal Addict
Mar 4, 2009
1743 posts
586 upvotes
Toronto
desertfox wrote: Has anyone already received their dividends from TD? I have both TD in my Virtual Brokers and Wealthsimple Trade and none has showed up yet.
Yep with TD DI

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