September Sees Surge for Utilities: Look to These Dividend Stocks

Statistics Canada released its GDP report for September 2017 on December 1. Utilities activity climbed 1.7% in the month as unseasonal weather increased demand for air conditioning and heating in Canada. Let’s look at three stocks investors can look to heading into 2018.

Hydro One Ltd. (TSX:H) stock has declined 3.6% in 2017. The company reported its third quarter results on November 16. Revenues dipped to $1.5 billion from $1.7 billion in Q3 2016. The company posted net income of $219 million in comparison to $233 million in the prior year. Hydro One is set to complete its acquisition of Avista Corp. in 2018 and apparently has further U.S. acquisitions in its sights. The stock offers an annual dividend of $0.88 per share with a 3.8% dividend yield.

Fortis Inc. (TSX:FTS)(NYSE:FTS) is another solid option for income investors. The stock has increased by 12.7% in 2017. The company reported third quarter earnings of $278 million compared to $127 million in the third quarter of 2016. The stock boasts an annual dividend of $1.60 per share representing a 3.5% dividend yield.

Shares of Canadian Utilities Limited (TSX:CU) have increased 7.1% in 2017. The company released its third quarter results on October 26. It posted adjusted earnings of $96 million which were in line with the prior year. The stock boasts an annual dividend of $1.15 per share with a 3.5% dividend yield. The company has delivered 45 consecutive years of dividend growth.