Capital Power: Picking Up Stock After A Dividend Hike

Capital Power remains attractive after a Q2 AFFO miss, with management reaffirming 2026 guidance and 2030 targets. CPX's dividend was increased by 2% to C$0.7048 quarterly, yielding 4.3% with a sub-50% payout ratio. Management guides for 8-10% annual AFFO per share growth through 2030, supporting ongoing dividend increases and capital flexibility. I'm building a full position, exploiting current volatility via share accumulation and writing puts, as CPX trades at just 8x anticipated 2030 AFFO.

Capital Power (CPX:CA) (CPXWF) is a Canadian power producer operating about three dozen facilities across North America. The company has recently put a lot of effort into expanding into the United States, and I like these diversification plans.