CA - Dividend Investors: Capital Power Offers A 6.7% Yield With Solid Dividend Growth Potential

2024-02-22 23:00:21 ET

Summary

• Capital Power is an undervalued dividend growth story with a focus on growth through acquisitions.
• The company has successfully diversified away from its home province of Alberta, with a significant portion of its expected 2024 capacity coming from assets in the United States.
• Despite its growth and diversification, Capital Power continues to trade at a low valuation, making it an attractive investment opportunity.
• It offers a 6.7% dividend yield with dividend growth potential of 6% annually.

Capital Power is an underappreciated and undervalued dividend growth story as investors focus on the Alberta power market rather than its growth-by-acquisition story. I maintain my buy ranking.

Introduction

Capital Power ( CPX:CA ) is an independent power producer ((IPP)) which owns 30 operating facilities across North America that generate a collective 7,700 megawatts worth of electricity . It has a long history of operating in Alberta, Canada, but has expanded across North America over the last decade....

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