4 Canadian Utility Stocks That Are Cash Cows

The Canadian utility stocks on our list have reported industry leading free cash flow yields

SmallCapPower | December 28, 2017: Utility stocks provide investors with a non-cyclical investment opportunity along with steady dividends. For investors looking to invest in top-performing Canadian utility stocks, we have compiled a list of companies with some of the highest Free Cash Flow Yields in the sector. Free Cash Flow Yield determines the Free Cash Flows per Share for a stock, divided by the current market price of the stock.

TransAlta Corp. (TSX:TA) – $7.39
Electric Utilities

TransAlta Corporation operates over 65 hydro, wind, gas, coal and solar power generation facilities across three countries with an operating capacity of 8,700 megawatts. The Company is Canada’s largest generator of wind power.

  • Market Cap: $2,128 Million
  • YTD Total Return: 1.6%
  • Dividend Yield: 2.13%
  • Free Cash Flow/Share Yield: 14.8%

ATCO Ltd. (TSX:ACO.X) – $44.74
Multiline Utilities

Based in Mexico, ATCO is a diversified global corporation invested in power generation & distribution, natural gas transmission & distribution and construction-related services. The Company has over 7,000 employees serving customers in over 15 countries.

  • Market Cap: $5,132 Million
  • YTD Total Return: 3.0%
  • Dividend Yield: 2.92%
  • Free Cash Flow/Share Yield: 8.8%

Crius Energy Trust (TSX:KWH.UN) – $9.04
Electric Utilities

Crius Energy provides electricity, natural gas, and solar products to residential commercial customers in North America and Australia. The Company operates through nine subsidiaries, which serve more than one million residential and commercial customers.

  • Market Cap: $515 Million
  • YTD Total Return: 15.7%
  • Dividend Yield: 9.09%
  • Free Cash Flow/Share Yield: 17.7%

Canadian Utilities Ltd. (TSX:CU) – $37.43
Multiline Utilities

Alberta-based Canadian Utilities has three main business groups: Pipelines & Liquids, Electricity and Structures & Logistics. The Pipelines & Logistics division offers natural gas energy and industrial water solutions to customers. The Company’s vertically-integrated electricity division supplies over 3,500 MW of power to customers, primarily in Western Canada. Lastly, the Structures and Logistics division offers work force housing solutions, which are useful for housing in remote communities. Canadian Utilities has over 5,400 employees with operations in more than three countries.

  • Market Cap: $10,138 Million
  • YTD Total Return: 7.3%
  • Dividend Yield: 3.81%
  • Free Cash Flow/Share Yield: 4.4%

Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own units in any of the companies mentioned above.

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