Brendan Caldwell Emera Inc EMA-T BUY Oct 11, 2024

It is well run and lower interest rates will be a catalyst for utility companies, There are issues with parts of the U.S. due to the effects of the recent hurricane which is really the latest in a series of hurricanes.

Likes it long term, but is enduring issues now. 

Utilities are her largest sector weight. Defensive, regulated earnings. Secular trend as we transition off fossil fuels. Long-term growth opportunities. Biggest asset is in Florida, a good jurisdiction. Stock came off due to hurricanes. Yield is 5.5%, grows at a small rate.

Bumps along the road, but the price has appreciated. Utilities are always levered, so as rates go up, there's more interest expense on the balance sheet and less profit hits the bottom line. Rates coming down have helped EMA's profit. Over time, expectation is that it will be the better choice. Yield is north of 5%.

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.

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.

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.