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  5. CPX: Would you consider this a worthy addition to an income portfolio with potential for capital appreciation? [Capital Power Corporation]
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Q: Would you consider this a worthy addition to an income portfolio with potential for capital appreciation? Seems like it's trading at a reasonable discount to price targets (for what they're worth) but wonder if there's a reason for that in relation to future prospects? Do you have any concerns regarding the balance sheet/payout ratio, etc.?
Thanks...
Asked by Michael on March 10, 2026
5i Research Answer:

We like CPX and think it is well positioned to benefit frm data center buildout between developments in Canada and their joint venture in the US. It has a reasonable valuation and good yield as well. Debt is higher but not unusual for companies like this given their stable cash flows. 

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