A dividend king is a stock that has delivered at least 50 consecutive years of dividend growth. United States investors have been spoiled in this regard as the top indexes boast more than a handful of top stocks that wear the dividend crown. Canada recently welcomed its first dividend stock into the royal fold, and there should be more to follow before this decade is through.
Canadian Utilities (TSX:CU) is a Calgary-based company that is engaged in the electricity, natural gas, and retail energy businesses around the world. Shares of this top dividend stock have dropped 6.5% in 2022 as of close on October 20. That has pushed the stock into negative territory in the year-over-year period.
This company is set to release its third quarter fiscal 2022 earnings before markets open on October 27. In Q2 2022, the Canadian Utilities reported adjusted earnings of $136 million compared to $115 million in the previous year. Meanwhile, adjusted earnings rose to $355 million in the first six months of the year compared to $306 million for the same period in fiscal 2021.
Back in July, the company declared a quarterly dividend of $0.4442 per share. That represents a strong 5.1% yield. This was the 50th straight year that Canadian Utilities had delivered a dividend increase. Meanwhile, the stock possesses a favourable price-to-earnings ratio of 16. I’m looking to snatch up this undervalued dividend king in a volatile market.
