Investment Q&A

Q: Hello 5i Team

Caribbean Utilities (CUC) was listed in the blog article as companies paying a US$ denominated dividend.

1 – Since Caribbean Utilities is a Cayman Island domiciled company, is it correct that the dividends would NOT be eligible Canadian dividends and therefore NOT eligible for the dividend tax credit (i.e. would be treated similar as US domiciled companies and dividends treated as ordinary income).

2 – According to the CUC website, there is no withholding tax on the dividends, therefore would CUC be best held in a RRSP in conjunction with other US utility companies?

3- CUC is owned approximately 58.5 % by Fortis, why does this ownership percentage not appear on the company information page of the 5i Research?

4 – How does CUC compare / rank with other similar US listed utilities (same market size cap and/or electrical distribution market focused)?

Thank you

Q: Your Q&A goes back a while on cup.u. My cost base is negligible (have owned for 20+ years) and would therefore be hit with a substantial capital gain. I hold it for it's US$ dividend payments of 4.1%. It has a payout ratio of 93% over 5 years and I do not see much growth in the name.
Would you be comfortable holding for income and re-investing the dividends into other US co's that have a greater growth outlook?
Advise me of any potential red flags that I may be missing.
Thank you,
Mike

Q: How can I find out if fap and cup.u are requried to be
reported in 1135 form for cra?
thanks

Q: Any thoughts?

Q: What grade mark would you give this utility with operations in Cayman Islands (CUP.U). I am interested in income and safety for my son's RDSP account. Thank-you
Best Regards
Harold