A High Yield Utility Stock With Big Growth Potential In 2017

We plugged into the Utilities sector this week, just to see if we could find something new, that hasn't tripped our radar yet. This stock yields 6.52%, with a 47% dividend payout ratio. Mgt. has raised 2017 AFFO guidance by 12%, and is targeting 7-8% dividend growth in 2017 and 2018. Mgt. has made 3 recent acquisitions that will ramp up earnings in 2017. This stock is selling at 21% below book value and is 13% below analysts' avg. price target.

We came up with Capital Power, (CPXWF), a Canadian independent power producer with a rapidly-growing asset base, which promises strong growth in 2017. Management raised its 2017 AFFO guidance by ~12% on the Q1 earnings release. The reason for this guidance hike is that management has made recent acquisitions that will be accretive in 2017. Capital Power is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, operates and optimizes power generation from a variety of energy sources. Capital Power owns approximately 4,500 megawatts of power generation capacity at 24 facilities and is pursuing contracted generation capacity throughout North America.

Source: Seeking Alpha

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