Hydro One Ltd (TSX:H) is a great dividend stock for investors looking for a consistent stream of income along with a lot of stability. Although in the past year it has climbed just 5%, it has also traded within a range of about $3, meaning there haven’t been big swings along the way. And for dividend investors that just want to collect a dividend and not worry about volatility, it’s a stock that can be suitable for those types of portfolios.
There is some negative stigma around the stock due to the Ontario government’s involvement in the company but having the province actively involved also ensures that management won’t be overly aggressive. Hydro One has been able to provide investors with a consistent top line along with strong earnings as well, although in its most recent quarter it posted a loss but that’s not likely to persist.
Currently, Hydro One pays shareholders a dividend of 4.2% which is a good payout that could grow over time. Although the company doesn’t have a long history of paying dividends, it has already hiked payouts a few times since listing on the TSX. And utility providers typically are one of the better options when it comes to dividend growth. As Hydro One accumulates more profits, it’s something that could become more regular.
The company is set to report its Q1 earnings on May 9 and a good result there could lead to both a jump in stock price and perhaps the dividend as well.
