When markets are risky, and rates of interest are holding regular, many buyers begin questioning the place to park their cash. Money might sound protected, however inflation eats away at it. Bonds are regular however sluggish. And a few sectors really feel a bit too dangerous today. That’s why, if I had $30,000 to take a position proper now, I’d put it to work in two of Canada’s most steady, dividend-paying utility shares: Capital Energy (TSX:CPX) and TransAlta (TSX:TA). Every gives publicity to the way forward for vitality, constant money circulate, and a powerful long-term development case.
CPX
Capital Energy is an Edmonton-based utility firm that develops, owns, and operates a combine of renewable and thermal energy era belongings throughout North America. Its portfolio contains wind, photo voltaic, pure gasoline, and vitality storage tasks. What makes it interesting is that it’s transitioning into cleaner energy whereas nonetheless producing wholesome money flows from its conventional operations.
In its first-quarter (Q1) 2025 earnings report, Capital Energy posted spectacular outcomes. Income got here in at $867 million, up from $778 million in the identical quarter final 12 months. Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) jumped to $367 million, in comparison with $279 million a 12 months earlier. Internet earnings hit $150 million, or $1.25 per share. Maybe extra importantly for dividend-focused buyers, adjusted funds from operations (AFFO) have been $218 million, or $1.57 per share. That sort of efficiency offers it room to take care of and develop its dividend, which presently pays $0.6519 per quarter.
Capital Energy can be investing closely in long-term development. It just lately acquired the 1,085-megawatt Hummel Station in Pennsylvania and is advancing tasks in carbon seize and battery storage. It has a powerful pipeline of renewable tasks below growth and maintains a disciplined capital allocation technique. Its mixture of development and earnings makes it an ideal decide for affected person buyers.
TA
Then there’s TransAlta, a Canadian inventory many Canadians know however usually overlook as an funding. Headquartered in Calgary, TransAlta has been producing electrical energy for greater than 100 years. It operates wind, hydro, pure gasoline, and battery storage services throughout Canada, the U.S., and Australia. After a couple of robust years earlier within the decade, the Canadian inventory has stabilized and is now thriving.
In its Q1 2025 earnings report, TransAlta reported income of $758 million, up from $678 million the 12 months earlier than. Adjusted EBITDA was $270 million, and free money circulate totalled $190 million. Internet earnings attributable to widespread shareholders have been $176 million, or $0.65 per share. It continues to supply a dividend of $0.26 per share yearly.
Whereas that yield isn’t large, it displays the Canadian inventory’s regular strategy. TransAlta has paid a dividend for 38 consecutive years, even in periods of market stress. And now it’s again in growth mode. It’s constructing wind and photo voltaic farms throughout Alberta and the U.S., and it’s partnering with Indigenous communities and industrial customers to develop its renewable footprint. It’s additionally making strikes in vitality storage and off-grid energy, which might be main themes over the subsequent decade.
Silly takeaway
What units each of those firms aside is that they supply important companies. Energy demand shouldn’t be going away. Actually, with the rise of electrical autos, synthetic intelligence (AI) knowledge centres, and electrified infrastructure, demand is anticipated to develop. These Canadian shares are positioned to satisfy that demand and receives a commission to do it.
If I had $30,000 to take a position right this moment, I’d possible put $15,000 in Capital Energy and $15,000 in TransAlta. That break up offers me one firm with the next dividend yield and a transparent path to near-term money circulate development and one other that’s lower-yielding however closely investing in inexperienced energy and long-term tasks. Collectively, these present a pleasant mixture of earnings, development, and stability.
In unsure instances, it helps to personal companies that don’t depend on hype to ship worth. Energy era isn’t glamorous, however it’s reliable. And these Canadian shares are doing it effectively. For Canadian buyers seeking to put cash to work with out chasing high-risk bets, Capital Energy and TransAlta are two of one of the best shares to contemplate shopping for proper now.
