Dividend Watch List

Conversion Watch

Two Canadian energy trusts are preparing for their respective conversions into dividend-paying corporations. Here's what to expect as they make the transition.

About That Spill

BP's (NYSE: BP) spill in the Gulf of Mexico will constrain the Super Oil's ability to pay a dividend at least until 2011. Risk-takers may have something here, but income seekers are better off elsewhere.

Bell Aliant Regional Communications Income Fund

Bell Aliant Regional Communications Income Fund (TSX: BA-U, OTC: BLIAF) will cut its distribution when it converts to a corporation in 2011. The solid rural telco will still yield north of 7 percent.

How to Get Off the List

Great Plains Energy (NYSE: GXP) is bringing a significant power plant project in on time and on budget. This, coupled with a low payout ratio, spells Great Plains' exit from the Dividend Watch List.

Trust the Converts

Canadian income trust conversions continue. Most management teams are making the transition without cutting distributions. It's clear that a high payout is key to their competing for capital.

Conversion Plays

Most Canadian income trusts will convert to tax-paying corporations this year. The good news: Most will maintain dividends at the same rate--or else very close to it.

Dry Hole

Last year British regulators took an axe to water utilities’ customer rates and capital spending plans.Last month Severn Trent (OTC: SVTRF) responded, announcing a package of cost cuts and a reduction in its distribution.

Eye on Canada

Boralex Power Income Fund's (TSX: BPT-U,  OTC: BLXJF) dividend cut was priced in already, and the new yield is still 10 percent and sustainable even after 2011 taxes on Canadian income trusts kick in.

Texas Three-Step

El Paso Corp (NYSE: EP) cut its dividend to a penny a share last month. Simultaneously, however, the company raised its 2009 earnings forecast to $1.15 to $1.20 per share and announced a strategic repositioning.

A Single Cut

Global power giant Enel (OTC: ESOCF, ENLAY) was the only How They Rate company to trim its distribution last month.



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Editor

Roger Conrad ROGER CONRAD
Editor: Canadian Edge, Utility Forecaster, Maple Leaf Memo, Utility & Income