As market volatility increases and inflation takes a toll, many investors shift their focus toward reliable dividend stocks, with utility companies frequently emerging as prime candidates. These firms are known for providing essential services backed by regulated revenue streams and consistent cash flows. Here are four noteworthy Canadian utility stocks currently priced below $500 per share that investors may want to consider.
Hydro One (TSX:H) stands out as one of Ontario’s leading electricity transmission and distribution firms, managing approximately 30,000 circuit kilometers of high-voltage transmission lines. With a customer base exceeding 1.5 million, Hydro One plays a crucial role in the region’s infrastructure. In its first-quarter earnings for 2025, the company reported revenue of $2.41 billion, an increase from $2.17 billion the previous year. Its net income improved to $358 million, translating to earnings per share (EPS) of $0.60. Hydro One also raised its annual dividend to $1.33, reflecting a pattern of gradual dividend increases that underscores investor confidence and the stable nature of utility stocks.
Brookfield Renewable Partners (TSX:BEP.UN) holds a significant position as a global leader in renewable energy, operating a diverse portfolio of hydroelectric, wind, solar, and energy storage facilities across North America and beyond. For the first quarter of 2025, Brookfield announced revenue of US$907 million and funds from operations of US$0.48 per unit. Although it reported a net loss of US$0.35 per unit, this figure was mainly influenced by non-cash items, while the core business continues to exhibit strong cash flow. With a stock price well below $500 and offering a yield close to 6%, Brookfield remains an attractive option for dividend-focused investors seeking exposure to clean energy.
Algonquin Power & Utilities (TSX:AQN) provides a blend of utility and renewable energy services across North America. The latest quarter brought in revenue of $692.4 million and a net income of $78.9 million, a significant turnaround from a loss experienced in the same quarter last year. Algonquin’s adjusted EPS reached US$0.14, surpassing analyst expectations. The company is committed to financial stability, targeting a return on equity of approximately 8.5% by 2027. With its diversified utility portfolio and substantial infrastructure investments, Algonquin represents a compelling opportunity for investors looking for both yield and future capital recovery, all while maintaining a stock price under $500.
These utility stocks highlight the potential for stable returns in uncertain market conditions, making them worth considering for any investment portfolio. Their focus on essential services and commitment to dividend growth can provide a cushion against market fluctuations, appealing to risk-averse investors.