When you talk about Canadian power companies you pretty much have to also talk about them as utility companies as well. If that doesn’t strike you as being a good investment then i’m not sure anything ever will. That is especially true when you are talking about the likes of Atco Group(ACO.X non-voting shares), Fortis Inc(FTS), Hydro One(H) and Emera Inc(EMA). Now I know that these are only a few of the companies in the sector but they are some of the biggest and most profitable. Not to mention they all pay a pretty decent and safe dividend, I mean how hard is it to say “no” to getting money back from a service you use 24/7 am I right?
Now, here at Outsider Trading we always say to invest in the biggest and best in any industry that you decide to invest in and this is no different. All of these 4 companies are fairly cyclical in some form, I mean here in Canada we have “four” seasons. Mostly its just winter(prime time for heating your house), spring(what’s that? Still heating your house?), Summer(better turn on the A/C twenty four seven) and Fall(what’s that? The heats back on?). These 4 companies are cyclical in the sense that they only seem to take big dips when there is a global recession, otherwise they are trucking right along breaking all time highs.
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Utility demand in Canada runs on the seasons — cold winters mean more electricity and gas usage, which is a steady tailwind for these companies’ profits. All 4 of these companies also take a pullback from time to time that I feel could be taken advantage of. Those are good reasons to keep watching: steady seasonal demand and the occasional dip. Anything else to pique your interest? How about electricity and gas prices, which have climbed substantially in recent years? As a homeowner living in Canada, inflation has been very noticeable as of late, which means your bigger bills could result in bigger gains on your investment.
Here is a little breakdown of each company and some metrics to show you why they are good investments.
Figures below are approximate, based on 2025 reported results and share prices as of October 2026.
Hydro One Ltd is the biggest electricity transmission and distribution utility in Ontario, Canada. They supply nearly 1.5 million customers with electricity. In 2025 they reported about $39.7 billion in total assets and net income of about $1.34 billion. The company has several large transmission projects underway, including a new priority transmission line between Bowmanville and the GTA expected in service in the early 2030s.
Hydro One Ltd (H)
~$51 CAD/share
~$30.5 Billion Market Cap
~$2.23 Earnings Per Share (2025)
~22 P/E
Dividend Yield of ~2.8%
Payout Ratio of ~57%
ATCO Ltd is a worldwide utilities, structures & logistics, energy infrastructure, retail energy, transportation and commercial real estate company that has worked in over 100 different countries. They operate tens of thousands of kilometres of electrical power lines and natural gas pipelines. ATCO Ltd currently has over $22 billion in total assets and has increased its common share dividend for 33 consecutive years.
ATCO LTD(ACO.X non-voting shares)
~$74.50 CAD/share
~$7.4 Billion Market Cap
~$1.60 Earnings Per Share
~47 P/E
Dividend Yield of ~2.8%
Payout Ratio of ~128%
Fortis Inc is an international diversified utility and electric holding company that operates in Canada, the United States and the Caribbean. They have more than 3.4 million utility customers and over $56 billion in assets. Fortis Inc has increased its dividend for 52 consecutive years, and in 2025 reported net earnings of $1.7 billion.
Fortis Inc(FTS)
~$75 CAD/share
~$38.4 Billion Market Cap
~$3.40 Earnings Per Share (2025)
~22 P/E
Dividend Yield of ~3.4%
Payout Ratio of ~75%
Emera Inc is an electric and gas utilities company that operates in North America and the Caribbean. They have about $39 billion in assets and serve approximately 2.7 million customers. Emera has increased its dividend for 20 consecutive years, and in 2025 reported net income of just over $1 billion.
Emera Inc(EMA)
~$68.40 CAD/share
~$21 Billion Market Cap
~$3.39 Earnings Per Share (2025)
~22 P/E
Dividend Yield of ~4.3%
Payout Ratio of ~87%
These 4 companies are all very safe and stable investments. They all provide a good and safe dividend along with slow and steady growth. You will not get rich overnight with these stocks but any of them would be a good addition to you portfolio. I have them on my watchlist and keep an eye on them, especially with steady energy demand and the price of everything going up. It is hard not to make money on the money you already spend.
That is all for today and remember everyone, invest in yourself first.
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*Disclaimer-I do not currently hold any of these companies in my portfolio.
