The small cap utilities stocks on our list would appeal to defensive-minded investors
SmallCapPower | May 30, 2017: One of the advantages of utilities stocks is their defensive nature and relative immunity to market conditions. No matter what, people must pay their hydro and gas bills, which provides for a safer investment in times of economic turmoil. Utilities companies also tend to pay out a generous amount of their profits to investors in the form of dividends. Today we have identified five small cap utilities stocks trading in Canada that pay relatively large dividend payouts.
Just Energy Group Inc. (TSX: JE) – $7.15
Natural Gas Utilities
Just Energy Group Inc. (Just Energy) is an energy management solutions provider engaged in electricity, natural gas, solar and green energy. The Company’s segments include Consumer Energy and Commercial Energy. The Company operates in the United States, Canada and the United Kingdom, offering a range of energy products, including long-term fixed-price, variable rate and flat bill programs; home energy management services, including smart thermostats and tools to manage energy use at the appliance level, and residential solar panel installations. It markets under the brands, such as Just Energy, Hudson Energy, Amigo Energy, GreenStar Energy, Just Solar, Tara Energy and TerraPass.
- Market Cap: $1,051,533,618
- Total Revenue (LTM): $3,757,054,000
- Debt to Equity: NA
- YTD Price Change: -2.6%
- Dividend Yield: 7.0%
Caribbean Utilities Company Ltd. (TSX: CUP.U) – $13.84
Caribbean Utilities Company, Ltd. is engaged in generating, transmitting and distributing electricity in its license area of Grand Cayman, Cayman Islands. The Company uses diesel generation to produce electricity for Grand Cayman. Its power system consists of 20 generating units, including 17 diesel engines, two gas turbines and one steam turbine with a combined capacity of approximately 160 megawatts (MW). In addition, it has four mobile units, each with a capacity of approximately 1.5 MW.
- Market Cap: $584,804,769
- Total Revenue (LTM): $217,165,786
- Debt to Equity: 114.8%
- YTD Price Change: 2.5%
- Dividend Yield: 5.3%
Valener Inc. (TSX: VNR) – $22.53
Valener Inc. is a Canada-based energy company that holds interests in Gaz Metro Limited Partnership (Gaz Metro), whose core operations are natural gas distribution in Quebec and Vermont, as well as electricity distribution in Vermont. The Company also owns indirect interests in wind farms through its subsidiaries, Valener Eole Inc. and Valener Eole 4 Inc., which have approximately 154 turbines and an installed capacity of 340 megawatts.
- Market Cap: $874,435,666
- Total Revenue (LTM): $1,312,700
- Debt to Equity: 11.5%
- YTD Price Change: 7.5%
- Dividend Yield: 5.0%
Innergex Renewable Energy Inc. (TSX: INE) – $14.56
Innergex Renewable Energy Inc. is an independent renewable power producer. The Company is a developer, owner and operator of renewable power-generating facilities with a focus on hydroelectric, wind power and solar photovoltaic (PV) projects. It operates through four segments: hydroelectric generation, wind power generation, solar power generation and site development. It has over 30 facilities with a net installed capacity of over 710 megawatts.
- Market Cap: $1,578,940,199
- Total Revenue (LTM): $292,785,000
- Debt to Equity: 574.1%
- YTD Price Change: 3.8%
- Dividend Yield: 4.5%
Polaris Infrastructure Inc. (TSX: PIF) – $16.49
Independent Power Producers
Polaris Infrastructure Inc. (Polaris Infrastructure), formerly Ram Power, Corp., is a renewable energy company focused on the development, production and sale of electricity from geothermal energy. It is engaged in the operation, acquisition and development of renewable energy projects in Latin America. The Company is operating an approximately 70-megawatt capacity (net) geothermal electrical energy production facility located in northwest Nicaragua (the San Jacinto project). It is also involved with the exploration and development of a second production facility in the Department of Chinandega in Nicaragua (the Casita Project).
- Market Cap: $257,704,772
- Total Revenue (LTM): $73,407,238
- Debt to Equity: 90.8%
- YTD Price Change: 7.8%
- Dividend Yield: 4.3%
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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