Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
If you are looking for dividend stocks that will allow you to retire comfortably, Canadian Utilities (TSX: CU) and renewable energy stock Capital Power (TSX: CPX) are two of the best options on the exchange. Both companies have a solid track record of consistently paying dividends and are industry leaders in Canada’s energy and utilities sector.
Firstly, Canadian Utilities has long been a favorite among dividend investors. As of this writing, this dividend stock has an impressive expected annual dividend yield of nearly 5% and a strong historical record of consistent dividend growth. In fact, Canadian Utilities is one of the oldest dividend-growth stocks in Canada, having increased its dividends for over 50 consecutive years.
Despite market fluctuations, Canadian Utilities continues to be profitable. The company recently reported quarterly revenue of $3.7 billion, a slight decrease of 2.2% year-over-year. However, with a profit margin of 16.4% and strong management efficiency indicators—including an 8.7% return on equity—Canadian Utilities remains robust in the utilities sector. For retirees, this suggests that dividends will continue to flow even during economic downturns.
Next, Capital Power is another outstanding dividend stock, with an expected annual dividend yield of 5% at the time of writing. What sets Capital Power apart is its focus on renewable energy strategies. With a strong market capitalization of $6.8 billion and a projected price-to-earnings ratio (P/E) of 18.4, Capital Power strikes a good balance between income and growth potential, which is crucial for those looking to retire early while still seeing capital appreciation.
Over the past 12 months, Capital Power’s revenue was $3.9 billion. Although the year-over-year revenue growth in the most recent quarter decreased by 8.5%, the profit margin remained healthy at 16.8%. In addition, efficiency metrics, such as a return on equity of 19.5%, indicate that the company can generate substantial returns for shareholders. The management has been proactive in focusing on expanding the renewable energy portfolio, positioning the company favorably for future growth as demand for clean energy continues to rise.
Management plays a key role in the success of both dividend giants. Looking ahead, it seems that both Canadian utility companies and Capital Power are well-positioned to continue delivering returns to shareholders.
