The Weekly Buzzing Stocks by Billy KawasakiEmera IncEMA.TOTOP PICKMay 23, 2024

Delivers power and that thesis is still going strong, no matter if price of oil drops. Nova Scotia has been tough, but Florida/Mexico is positive. Still getting dividend yield and growth. Will continue to grow steadily, though pace of growth won't be what we've just seen.

Hard to buy at these levels, but his firm is happy to hold -- capital gain is deferred and embedded. If your position is way overweight, you could trim.

She loves utilities. Is at all-time highs, but is adding shares. Is a diversified utility. They operate in places like Florida, which enjoys strong population growth and a regulatory environment. Nova Scotia may uncap rates, which would benefit EMA. They can add more solar projects in FLA. They keep growing the 4% dividend.

US utilities have done very well. Demand from data centres and re-shoring in the US is good for power and electric utilities companies. It is fine as an income stock.

Leverage has historically been a problem, but now more de-levered. Higher-beta Canadian utility. Take a step back and ask if this is the best diversified utility? Probably not. For example, NEE has a similar footprint and is in the US. 

Stretched payout ratio has been an issue in the past, though not right now. Yield is 4.3%.

Loves the space. Trading ~18x PE. Not crazy, but higher than historical norms. So she's buying AQN instead.

In clients' TFSAs. Electricity producer in Maritimes and Tampa, Florida. Growth of rate base will determine where the stock price goes. Lower interest rates help them. Growing customer base, which means profits will jump, and dividends will grow. Company estimates dividend growth probably in 3-6% range over next few years. Challenge after that is how to grow the business -- either by acquiring or building out. 

Right space, right time. Still a buy as demand for electricity appears to be on the rise.

Likes it. Up 21% YTD. They do what they say they're going to do. Nova Scotia now coming out of its rate freeze, should see earnings increase in 2026. Asset sales mean that debt level is OK. Dividend can still be increased, though at lower levels than historically. Has trouble trimming a name that's been really good to her, especially as she's a long-term investor.

Utilities is her favourite sector. If economy rolls over, $$ will come out of the high-torquey sectors and move to defensive.

Likes the regulated utilities. 

A stable, dependable business with a good footprint in the US that will allow growth. It has room to run. The valuation is below peers and debt is much better. Can use a stop loss to lock in your gains. Or sit tight.

Big acquisition a year ago increased presence in US, and that will be its growth driver. It's fine as an income stock, with a nice yield. But see her Top Picks.

Largest distribution utility is in Florida, where population growth has soared since pandemic. Regulator in Florida is easy to deal with. Diversified. Benefits from a risk-off mentality in the market.

A boring, stable utility. Pretty much discarded last year with people chasing the AI trend. Big move since January with the flight to safety. Outlook was upgraded from Negative to Stable. Good job reducing leverage. Florida just approved storm reparation costs from 2 hurricanes in 2024.

Volatility in last month has been great for all the utilities. Not a lot of growth, only ~7%. He looks for a bit more growth. Great place to shelter for defensive positioning, plus 4.9% yield.

Very stable business that will hold up better in the face of tariffs. Canadian utility-type business. Slow but steady dividend growth. Not cheap, but dividends will be rock-solid and even more attractive with yields low in Canada.