Stock price when the opinion was issued
Place to hide that's somewhat immune from tariffs. High growth in both utilities and midstream. Q4 announced the next wave of growth projects to the end of the decade. Increased propane sales, expansion of the North. Decent yield of 3.2%, grows 5% a year.
Stock's had a move, but still a discounted valuation at under 14x.
Half utility, half gas processing. Both segments doing well. Utility side rate base is growing 8%, which is higher than others. Working on large propane export projects off the West Coast. A lot of gas producers are looking for capacity outside the US; Asian markets, for example, have higher pricing. Yield is 3.16%.
(Analysts’ price target is $39.50)You always have to be putting new $$ to work. If you're at your asset allocation on equities, you don't need to add.
But if building a portfolio, this name is pretty defensive with good upside. Actually benefits from tariff noise as producers look to diversify export markets. Gaining new contracts. Utility business doing really well on data centres. Great combination of offshore gas and onshore data centres.
At 16x, trades cheaper than peers; growing around 10%. 3.1% dividend yield, which is growing nicely.
The caller asked if she should continue to keep it as 10% of her portfolio. His concern is that 10% is too high and should be dropped by half to 4 or 5%. No stock should take up 10% of a portfolio. The company itself is a great one: stable and solid with a long history of dividends and modest growth.
Name to look at in the same space as FTS, but at a much better valuation.