CU.TO

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Curious as to CU long term, dividend seems good and has increased the last 51 years, would like to see some capital growth which it might be able to do over time. Or are the financials better with CNQ and as such a better play. Any thoughts?

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Asked on January 17, 2024 1:58 pm
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Hi there,

You can't really compare CU and CNQ as they are two completely different stocks operating in different sectors. That said, CNQ's financials are rock solid, but ultimately its fortunes are dependent on the price of oil & gas. For it's part, CU is a stable, regulated utility that hasn't seen much growth over the years. That doesn't mean its a bad stock. It just means that is is very mature and what investors can expect is slow growth with a steady yield. I don't forsee any issues with the dividend continue to grow, but it'll like be in the low, single-digit range unless if can find transformational growth levers. That would likely have to come from acquisitions.

If you are looking for capital growth, I'd lean more towards FTS which has a better track record of growth. Once again, you aren't going to get crazy growth, but consistent mid-to-high single digit growth plus a strong dividend as well. Of note, I do own FTS and CNQ.
Mat

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Posted by Mathieu Litalien
Answered on January 19, 2024 5:21 am