This Canadian Utility Stock Just Boosted Its Payout and Now Yields Nearly 5%
Management is confident in the company's ability to perform at a high level, which is evident in Capital Power's board recently approving a 6% dividend increase. The new quarterly payout of $0.691 per share quates to an annualized dividend of $2.764. And with the stock trading at around $56, that means investors who buy today can collect a yield of around 4.9%. It's the 12 th consecutive year that the company has raised its payout, as it builds up its reputation of being a dependable dividend growth stock.
The company's adjusted EBITDA for the most recent quarter was $322 million, which was nearly identical from the $323 million it reported a year ago.
Capital Power recently closed two acquisition, one for Hummel Station (in Pennsylvania) and for Rolling Hills (in Ohio), which will expand its operations in the U.S. and lead to more growth for the business in the future.
Investing in energy companies can be a good way for dividend investors to benefit from long-term stability while collecting above-average payouts. Since companies like Capital Power benefit from a great deal of recurring revenue, they can make for fairly good long-term investments.
Over the past five years, Capital Power's stock has doubled in value, and that's without factoring in its dividend over that stretch. Trading at 18 times its estimated future earnings, this can be a good dividend stock to buy and hold right now.
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