Emera Inc (EMA.TO)

He likes the utility space, given we are in the late-rate cycle. Emera is one of the more solid utilities. Valuations are attractive for an entry point. However, these stocks are at risk if interest rates rise quickly.

The group is out of favour, like anything interest-rate related. They're down 15% YTD, so it's a decent entry point now. Rates will likely slowly rise, so buy a company with some growth. Under $40, EMA is a good long-term entry point. Be patient and collect your dividend.

He likes it. Has pulled back and the valuation looks very attractive now. Cleaning up some of its assets.

It is down 20% from the top and it is attributed to interest rates. His play in this space is NPI-T. He wants the diversification outside of Canada.

SU-T vs. EMA-T. EMA-T has a higher dividend. He thinks there is more capital appreciation potential with SU-T, however.

This is best known for its legacy business of Nova Scotia Power. Today, it is now an international utility operator with over 80% of revenue coming from outside Canada. A weakness lies with a dropping ROE from 14% to only 9% -- meaning bigger is not always better. He expects to see a moderation in the growth of the dividend. A credit agency put them on watch in December. This is a reasonable entry. Yield 5.5%. (Analysts’ price target is $49 )

He finds decent value in the utility space now. This is a stable business. Rising rates can continue to weigh on this stock, but much of that has already been priced in. This is a high-quality business that will continue to grind out cash. It has growth opportunities in Florida and elsewhere.

People buy this stock for safety. Normally this stock has very low volatility but it has dropped sharply. There is a price/volume divergence: volume is shooting up while the price is dropping. He thinks he is seeing panic sellers and value buyers. There is nice support at $39. With a 5.5% yield, there will be good income, but he doesn’t expect a quick recovery. This is significantly risky at this time.

A lot of Canadians have been shocked by the drop. They are interest sensitive. They also hold a lot of debt. It is a great company with a solid dividend. Wait until rate rises slack off a bit.

He is interested in the name. 41 – 42 level seems pretty good. We could have a little bit of a drop from here to the 37 level. He believes that the market will be able to handle higher interest rates. If there is an acceleration in interest rates you probable don’t want to own it.

All stocks that pay high dividends have been under pressure with the past year's interest rate hikes here in Canada, and this will continue. Can Emera outpace those rate increases with dividend increases? In short term, there's a lot of risk with rising rates, though these stocks provide defense and pay short-term dividends. These utilities need a lot of money to operate and need to borrow, so rising interest rates will effect them. But revenues from pipelines are constant which is positive. 5.7% yield

Good time to jump in. Utilities have sold off due to fears of 10-year Canadian yield rising. Dividend will likely increase 5-6% a year compounded. Selling due to higher interest rates rising is self-fulfilling. No, this is a buying opportunity.

Stock hit 52-week lows lately. More to do with investors being too sensitive to interest rates and hurt by negative sensitive on Canadian oil. 90% of its earnings are regulated and has a solid portfolio with growth prospects in renewables, such as solar in Florida and hydro and wind in the east. Will see consistent growth and dividend increases. A miss in Q3 along with the oil space, but an over-4% dividend. Near-term won't see a change in stock price, but patience will be rewarded.

Got rid of all his utilities during the summer. The chart shows this one has a pretty decent trend, but the last little action has been pretty negative. It looks like it wants to migrate back to $47. The last 3 days on this was pretty significant.

Long-term hold? Canada has a number of Public utility companies, and a couple of them, such as this one and Fortis (FTS-T), are what he would call growth utility companies, where they don’t just stick to the market they are in, but are active acquirers and growers in other geographies, mostly in the US. He looks at this as being the leading Canadian growth utility company, and sees them continuing to grow their earnings in Canada, and more so outside Canada. Interest rate sensitive, so if interest rates go down, the stock does better. For a long-term investor, companies like this should be a part of your portfolio.