4 Unstoppable Utility Stocks to Buy Right Now for Less Than $500
When markets get rocky and inflation starts to bite, many investors turn to dependable dividend stocks. Utility stocks often top the list, offering a combination of essential services, regulated revenue, and consistent cash flow. Best of all, many of these top-tier Canadian utility stocks are still trading well under $500 per share. If you're looking to build a strong portfolio without breaking the bank, here are four unstoppable options to consider right now.
Hydro One (TSX:H) is one of Ontario's largest electricity transmission and distribution companies. It operates about 30,000 circuit kilometres of high-voltage transmission lines, and its customer base spans more than 1.5 million people. This isn't the kind of business that gets exciting headlines, but it's steady and essential.
In its most recent earnings for the first quarter of 2025, Hydro One posted revenue of $2.41 billion, up from $2.17 billion the year before. Net income rose to $358 million, with earnings per share (EPS) climbing to $0.60. It also raised its dividend to $1.33 annually, continuing a slow and steady trend of annual increases. Year to date, the Canadian stock is up modestly, showing stable investor confidence and the kind of predictable performance utility investors love.
Brookfield Renewable Partners (TSX:BEP.UN) is one of the world's largest publicly traded renewable power platforms. It owns and operates hydroelectric, wind, solar, and energy storage facilities across North America and globally.
In the first quarter of 2025, Brookfield reported revenue of US$907 million and funds from operations of US$0.48 per unit. While it posted a net loss of US$0.35 per unit, that was largely due to non-cash items. The core business is generating strong cash flow, and management remains optimistic about long-term demand for clean energy. The Canadian stock trades for well under $500 and offers a yield close to 6%, with a consistent track record of dividend growth.
Algonquin Power & Utilities (TSX:AQN) delivers both utility and renewable energy services across North America. In its latest quarter, the Canadian stock reported revenue of $692.4 million and net income of $78.9 million, turning around last year's net loss in the same quarter.
Adjusted EPS came in at US$0.14, ahead of analyst estimates. Management also reaffirmed its commitment to financial stability and targeted a return on equity near 8.5% by 2027. Algonquin's diversified utility portfolio and infrastructure investments make it an interesting long-term bet, especially for investors looking for value. The Canadian stock remains well under $500 and pays a solid dividend while offering the potential for capital recovery as earnings improve.
Boralex (TSX:BLX) rounds out this list as a renewable energy developer and operator with assets in Canada, France, and the United States. In the first quarter of 2025, Boralex generated $237 million in revenue, down about 12% from the year before, mostly due to lower production in Europe and reduced energy prices.
Net earnings also declined to $41 million from $73 million. While this might seem concerning, Boralex still produced positive discretionary cash flow and maintained a healthy balance sheet with $388 million in cash and undrawn credit. It remains a growth-focused player in the renewable sector, and at current prices, it offers an attractive entry point for long-term investors who believe in the clean energy transition.
All four of these utility stocks offer strong dividend yields, exposure to either regulated or renewable energy markets, and price tags well under $500. For Canadians looking to add stability and income to their portfolios without overpaying, these Canadian stocks deserve attention. These may not shoot higher overnight, but steady income and growing demand for energy make them compelling for the long haul.
In uncertain times, the value of steady dividends and reliable services becomes even clearer. These utility stocks are built for exactly that. And at these prices, it's easy to buy and even easier to hold.
The post 4 Unstoppable Utility Stocks to Buy Right Now for Less Than $500 appeared first on The Motley Fool Canada.
Before you buy stock in Algonquin Power and Utilities, consider this:
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Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS]
Market Volatility Toolkit
Best Canadian Stocks to Buy in 2025
Beginner Investors: 4 Top Canadian Stocks to Buy for 2025
5 Years From Now, You'll Probably Wish You Grabbed These Stocks
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
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