Emera Inc (EMA.TO)

Has been hurt quite a bit over the last few months. 2014 will be a year where Fed has to pull back on QE. Everything interest rate sensitive will probably lag into next year. He would not sell. Lighten up if it rallies a bit more.

(Market Call Minute.) Got up to 2.5X Adj BV and he put out a Sell on the stock. You couldn’t miss. Another $2-$3 down and it will be a nice time to Buy.

He has been very impressed with them recently. Good at securing projects. Good solid dividend payer. Given progress on their major project right now it will need capital along the way so he would watch it over the next couple of years.

Not a bad company but, when there was a hint of higher interest rates coming, the stock dropped dramatically. Has other growth prospects and is doing a good job. Feels it was overdone.

When bond yields go up, prices go down and this is the same thing for utilities. This group has come under pressure. A lot of the damage has been done and if you own this for the dividend, you are probably not too bad off, but there are better groups to be in that will give you yield plus growth.

An electric utility based in Halifax. Operations are mostly in the East Coast with some in the US and in the Caribbean. As soon as bond yields started to go up, the stock has been coming off and this is the same for most utilities. The reason is, the fast majority of investors own for the yield and if yields are going up, the price of a utility has to go down to adjust for the current yield expectations. This won’t be a star performer until interest rates stabilize. 4.8% distribution.

Thinks that 80% of the downward move is over. The bulk of this pullback is purely interest-rate driven. Very close to a long-term entry point at this time.

Has been a bond substitute but that is winding down. Don’t expect any capital gains. It’ll be supported by the yield and he doesn’t see them cutting the dividend. 4.6%

(Market Call Minute.) Diversified utility and infrastructure play. Likes it a lot. Worth $37.

Has been hit along with many of the utilities and pipelines by the share price in long-term interest rates. At the current levels he feels it is reasonably valued. 4.25% dividend and feels that increases should steadily come over the next number of years. Would Buy on any weakness.

Classic company that has a history of raising the dividend. A core holding. Better than a bond. Stead dividend growth and better yield. Rate-type assets are stable. A boring name but continues to deliver over time.

The risk is what the multiple is on their earnings. If the multiple contracts the valuation will come down. It does not mean they will cut the dividend. But these are capital intensive industries and it gets harder and harder to fund growth as interest rates go up.

Nova Scotia-based utility with Nova Scotia Power as its main asset. Also, has some pipelines, some assets in Maine and it is behind the expansion out of Churchill Falls. Considers this as Canada’s growth utility. Price has not contracted as much as some of the other utilities but it is looking at little peaky at this point. For now you have seen the bulk of the capital gains. Dividend is quite safe and probably will grow. If you are looking for capital gains, you’ll have to look somewhere else for now. 4% dividend yield.

Likes the utilities although the yield has got a bit low. Well-run company. This is the sort of company that you buy and put aside.

Bond yields have bumped their way higher over the last few weeks and the utilities group will be the most impacted. You own this one for the yield, less so for growth in the yield. He prefers energy infrastructure which has better opportunity for dividend growth. If you have concerns about long-term rising interest rates, this is one that could get impacted. Doesn’t see a ton of risk but doesn’t see the upside as you would have in the energy infrastructure companies.