A dividend king is a stock that has achieved at least 50 straight years of dividend growth. There is only one stock on the TSX that has accomplished this impressive feat at the time of this writing. Today, I want to discuss why this stock looks like a bargain as we enter the final weeks of the spring season.
Canadian Utilities (TSX:CU) is a Calgary-based company that is engaged in the electricity, natural gas, and retail energy businesses in the United States, Australia, and around the world. Shares of this top dividend stock have dropped 6.7% month-over-month as of close on May 30. That has pushed the stock into negative territory so far in 2023.
This company unveiled its first quarter fiscal 2023 earnings on April 27. Adjusted earnings dipped to $217 million compared to $219 million in the first quarter of fiscal 2022. Meanwhile, the company invested $304 million in capital expenditure with 86% invested in regulated utilities and 14% in Energy infrastructure.
Canadian Utilities has achieved 51 consecutive years of dividend growth. The stock currently offers a quarterly dividend of $0.449 per share. That represents a very solid 4.8% yield.
Shares of this dividend king possess a favourable price-to-earnings ratio of 15. Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. This dividend stock last had an RSI of 34, having just climbed out of technically oversold territory. I’m looking to snatch up this undervalued dividend king on the final day of May.
