Canadian Utilities

This stock (TSX-CU) is on the Dividend Achievers list at www.dividendachievers.com, the Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices) and also on Mike Higgs’ list at www.dividendgrowth.org/Report.htm. Today I will review how this stock has done in the past. Tomorrow I will look at it now and for the future.

All my following figures are for the year ending at the last annual statement of December 2007. The annual report for December 2008 is not yet out.

The dividend growth for the last 5 and 10 years was 4.9% and 4.8%. Although these are not great figures, they are higher than inflation. The 5 and 10 years growth for Closing Price was 16% and 12%. The 5 and 10 year figures for Cash Flow are 16% and 10%. The 5 and 10 years growth for Book Value was 7% and 7%. The Liquidity Ratio is 2.11 and the Asset/Liability Ratio is 1.45. These are all decent figures.

There has been no growth in revenues over the 5 years, and in fact, the revenues have been going down. This is not good. Also, the 5 and 10 year growth for Earnings per Share (EPS) was 5% and 8%. These are rather mediocre. However, as for all dividend paying stock, the cash flow is more important. The Accrual Ratio is 4.4%. This is rather high, but not awful.

Basically, this is a good quality dividend paying stock and I can see why it is on so many lists. The yield is been around 3% and is now at 3.6%. You will not get rich on it, but it has been a solid stock.

Canadian Utilities Limited operates in four business segments: regulated natural gas operations; regulated electric operations; technologies; and power generation. These operations provide service to industrial, residential and commercial customers. Other businesses consist of: natural gas gathering, processing, storage and natural gas supply management and technical facilities management. ATCO owns this company. Its web site is www.canadian-utilities.com. See my spreadsheet at www.spbrunner.com/stocks/cu.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.