Utility companies supply essential services such as electricity, natural gas, and water, making them less susceptible to market fluctuations due to the critical nature of their business. This characteristic allows these companies to safeguard capital during challenging economic periods while offering steady, albeit modest, returns. Presented below are three top Canadian utility stocks currently worth considering.
Across the globe, the daily reliance on electricity and natural gas in households is universal, and Canada is no exception to this societal norm. Given the indispensable nature of these services, our investment philosophy favors companies providing products that people depend on daily.
 |  |  |  |  |  |
|---|---|---|---|---|---|
| Advice | InvestCAN | InvestRESP | InvestUSA | RetireCAN | RetireMGN |
| $500.00 CAD $400.00 USD | $99.99 CAD | $79.99 USD | $99.99 CAD | $17.99 CAD $12.99 USD |
Canadian Utilities Sector Stocks
The Canadian utility sector, often perceived as less dynamic, is characterized by companies that generate consistent and predictable revenues compared to other industries. Consequently, the sector exhibits lower volatility. Many Canadian utility companies not only offer attractive dividend yields but have also demonstrated the ability to increase dividend payouts for extended periods.
Considering the high dependence on their products, consistent revenue streams, low volatility, attractive dividend yields, and prolonged histories of dividend increases, I advocate that Canadian dividend investors should include a portion of Canadian utility stocks in their portfolios.
Utility companies play an integral role in our daily lives, serving as the lifeblood of our world’s infrastructure. Disrupting these services can result in a significant breakdown, akin to plunging into the dark ages. In the realm of business, few entities offer more stability than utilities.
What is the Best Utility Stocks in Canada?
- Brookfield Renewable Corporation (BEPC.TO)
- Brookfield Infrastructure Corporation (BIPC.TO)
- TransAlta Corporation (TA.TO)
- Capital Power Corporation (CPX.TO)
- ATCO Ltd. (ACO-X.TO)
- ATCO Ltd. (ACO-Y.TO)
- Emera Incorporated (EMA.TO)
- Caribbean Utilities Company, Ltd. (CUP-U.TO)
- Canadian Utilities Limited (CU.TO)
- Polaris Renewable Energy Inc. (PIF.TO)
| Ticker | Company | Market Cap | Beta | P/E | Yield |
| ACO.X | ATCO Ltd. | $4,325,000,000 | 0.70 | 10.33 | 5.15% |
| ACO.Y | ATCO Ltd. | $4,359,000,000 | 0.70 | 10.86 | 4.94% |
| BIPC | Brookfield Infrastructure Corp | $6,211,000,000 | 1.39 | 4.55 | 4.35% |
| BEPC | Brookfield Renewable Corp | $6,899,000,000 | 0.91 | 3.28 | 4.69% |
| CU | Canadian Utilities Ltd | $8,701,000,000 | 0.62 | 14.39 | 5.72% |
| CPX | Capital Power Corp | $4,370,000,000 | 0.59 | 8.49 | 6.62% |
| CUP.U | Caribbean Utilities Co Ltd | $428,764,000 | 0.47 | 11.47 | 6.27% |
| EMA | Emera Incorporated | $13,429,000,000 | 0.30 | 11.28 | 5.81% |
| PIF | Polaris Renewable Energy Inc | $265,135,000 | 0.91 | 14.66 | 6.54% |
| TA | TransAlta Corporation | $3,170,000,000 | 1.04 | 4.78 | 2.36% |
10. Polaris Renewable Energy Inc.
Polaris Renewable Energy Inc. engages in the acquisition, development, and operation of renewable energy projects in Latin America. It operates a 72 MW net geothermal facility in Nicaragua; and 4 run-of-river hydroelectric facilities in Peru and Ecuador with approximately 33 MW net capacity; and solar project in the Dominican Republic and Panama. The company was formerly known as Polaris Infrastructure Inc. and changed its name to Polaris Renewable Energy Inc. in July 2022. Polaris Renewable Energy Inc. was incorporated in 1984 and is headquartered in Toronto, Canada.
9. Canadian Utilities Limited
Canadian Utilities Limited, together with its subsidiaries, engages in the electricity, natural gas, and retail energy businesses in the United States, Australia, and internationally. It operates through Utilities, Energy Infrastructure, and Corporate & Other segments. The Utilities segment provides regulated electricity transmission and distribution services in northern and central east Alberta, the Yukon, and the Northwest Territories; and integrated natural gas transmission and distribution services in Alberta, the Lloydminster area of Saskatchewan, and Western Australia. It owns and operates approximately 9,100 kilometers of natural gas pipelines, 16 compressor sites, approximately 3,700 receipt and delivery points, and a salt cavern natural gas storage peaking facility located near Fort Saskatchewan, Alberta in Canada. The Energy Infrastructure segment provides electricity generation, natural gas storage, industrial water, and related infrastructure development solutions in Alberta, the Yukon, the Northwest Territories, Australia, Mexico, and Chile. The Corporate & Other segment retails electricity and natural gas in Alberta. Canadian Utilities Limited was incorporated in 1927 and is headquartered in Calgary, Canada. Canadian Utilities Limited operates as a subsidiary of ATCO Ltd.
8. Caribbean Utilities Company, Ltd.
Caribbean Utilities Company, Ltd. generates and distributes electricity in Grand Cayman. The company generates electricity using diesel with 166 megawatts total installed capacity. It also operates nine transformer substations with approximately 375 circuit miles of overhead and 111 circuit miles of underground high-voltage transmission and distribution powerlines, and 15 circuit miles of high-voltage submarine transmission cables. The company also provides telecommunication services. The company was incorporated in 1966 and is headquartered in Grand Cayman, the Cayman Islands. Caribbean Utilities Company, Ltd. operates as a subsidiary of Fortis Energy (Bermuda) Ltd.
7. Emera Incorporated
Emera Incorporated, an energy and services company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers. The company operates through Florida Electric Utility, Canadian Electric Utilities, Other Electric Utilities, Gas Utilities and Infrastructure, and Other segments. It generates electricity through coal-fired, natural gas and/or oil, hydro, wind, solar, petroleum coke, and biomass-fueled power plants. The company is also involved in the purchase, transmission, distribution, and sale of natural gas; and the provision of energy marketing, trading, and other energy asset management services. In addition, it transports re-gasified liquefied natural gas from Saint John, New Brunswick to consumers in the northeastern United States through its 145-kilometer pipeline. As of December 31, 2022, the company’s electric utilities served approximately 827,000 customers in West Central Florida; 541,000 customers in Nova Scotia; 133,000 customers in the island of Barbados; 19,000 customers in the Grand Bahama Island; and gas utilities and infrastructure served approximately 468,000 customers across Florida and 545,000 customers in New Mexico. The company was incorporated in 1998 and is headquartered in Halifax, Canada.
6. ATCO Ltd.
ATCO Ltd., together with its subsidiaries, engages in the provision of housing, logistics and transportation, agriculture, water, real estate, and energy and energy infrastructure solutions in Canada, Australia, and internationally. The company offers workforce and residential housing, modular facilities, construction and site support, workforce lodging, facility operations and maintenance, defense operations, and disaster and emergency management services. It also provides commercial real estate services, including sale, lease, and development of commercial and industrial properties; and engages in processing and marketing of fly ash. In addition, it generates electricity through hydro, solar, wind, and natural gas facilities, as well as provides electricity distribution, transmission, storage, and related infrastructure services; offers natural gas transmission, distribution, storage, and retail sales; natural gas liquids storage services; and provides integrated water services, including pipeline transportation, storage, water treatment, recycling, and disposal to various industrial customers. ATCO Ltd. was founded in 1947 and is headquartered in Calgary, Canada. ATCO Ltd. operates as a subsidiary of Sentgraf Enterprises Ltd.
5. ATCO Ltd.
ATCO Ltd., together with its subsidiaries, engages in the provision of housing, logistics and transportation, agriculture, water, real estate, and energy and energy infrastructure solutions in Canada, Australia, and internationally. The company offers workforce and residential housing, modular facilities, construction and site support, workforce lodging, facility operations and maintenance, defense operations, and disaster and emergency management services. It also provides commercial real estate services, including sale, lease, and development of commercial and industrial properties; and engages in processing and marketing of fly ash. In addition, it generates electricity through hydro, solar, wind, and natural gas facilities, as well as provides electricity distribution, transmission, storage, and related infrastructure services; offers natural gas transmission, distribution, storage, and retail sales; natural gas liquids storage services; and provides integrated water services, including pipeline transportation, storage, water treatment, recycling, and disposal to various industrial customers. ATCO Ltd. was founded in 1947 and is headquartered in Calgary, Canada. ATCO Ltd. operates as a subsidiary of Sentgraf Enterprises Ltd.
4. Capital Power Corporation
Capital Power Corporation develops, acquires, owns, and operates renewable and thermal power generation facilities in Canada and the United States. It generates electricity from various energy sources, including wind, solar, waste heat, natural gas, and coal. The company owns an approximately 7,500 megawatts of power generation capacity at 29 facilities. It also manages its related electricity, natural gas, and emissions portfolios by undertaking trading and marketing activities. Capital Power Corporation was founded in 1891 and is headquartered in Edmonton, Canada.
3. TransAlta Corporation
TransAlta Corporation engages in the development, production, and sale of electric energy. It operates through Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments. The Hydro segment has a net ownership interest of approximately 922 megawatts (MW) of owned hydro electrical-generating capacity located in Alberta, British Columbia, and Ontario. The Wind and Solar segment has a net ownership interest of approximately 1,878 MW of owned wind and solar electrical-generating capacity, as well as battery storage facilities located in Alberta, Ontario, New Brunswick, and Québec in Canada; and the states of Massachusetts, Minnesota, New Hampshire, North Carolina, Pennsylvania, Washington, and Wyoming in the United States. The Gas segment has a net ownership interest of approximately 2,775 MW of owned gas electrical-generating capacity, and facilities located in Alberta and Ontario in Canada; Michigan, the United States; and Western Australia. The Energy Transition segment has a net ownership interest of approximately 671 MW of owned coal electrical-generating capacity, as well as operates the Skookumchuck hydro facility in Centralia; and engages in the highvale mine and the mine reclamation activities. The Energy Marketing segment is involved in the trading of power, natural gas, and environmental products. It serves customers in various industry segments, including commercial real estate, municipal, manufacturing, industrial, hospitality, finance, and oil and gas. The company was founded in 1909 and is headquartered in Calgary, Canada.
2. Brookfield Infrastructure Corporation
Brookfield Infrastructure Corporation, together with its subsidiaries, owns and operates regulated natural gas transmission systems in Brazil. The company also engages in the regulated gas and electricity distribution operations in the United Kingdom; and electricity transmission and distribution, as well as gas distribution in Australia. It operates approximately 2,000 kilometers of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo, and Minas Gerais; 4.3 million gas and electricity connections; and 60,000 kilometers of operational electricity transmission and distribution lines in Australia. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Infrastructure Corporation operates as a subsidiary of Brookfield Infrastructure Partners L.P.
1. Brookfield Renewable Corporation
Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, and solar power plants with an installed capacity of approximately 12,857 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York.
