Emera Inc (EMA.TO)

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.

He is only warm to the utility companies in Canada. Not exciting but will continue to grow.

Favours this over Fortus for growth in Labrador and Newfoundland, will be better dividend growth and value growth.

Going to be a couple of years before there is an impact on the production out of Newfoundland that they are sharing in. Stock will probably be going sideways but he has no concern about the dividend. This will be a longer-term growth story.

Likes this one but valuation does not offer a compelling rate of return at this point. Has a safe, stable dividend but upside is probably capped.

Good growth in the area but at these levels it looks expensive. Likes the dividend. Good solid company.

At what time does a red flag go up when you are looking at a utility sector, regarding the PE multiples? What do you think of the utility sectors going forward? In the dividend camp, the utilities are probably going to be the most staid of the group. You are not looking for big upside. You are looking for some appreciation and your dividend yield. It may well be that dividend payers continue to be expensive on a relative basis if the alternatives of government bonds or term deposits don’t cut it for investors.

Sold at $34 level and if we get a break out from here he would be seriously interested in it. Money flow has come in. This helps you with support. Pretty decent trend.

A utility. Mostly Nova Scotia Power but has some other operations in Maine and other places. Was an exciting stock when interest rates were collapsing and its very attractive yield stood out and the stock went up 50% in one year. Still a very attractive utility with a very attractive dividend that will grow. Has the bonus of participating in the Lower Churchill project so there is some really good growth ahead of it. If you are looking for safety and income, this is pretty good.

Have electrical transmission, generation and distribution mainly in the Northeast US, Atlantic Canada and the Caribbean. Great management. Balance sheet is in great shape. Probably worth around $36, so wouldn’t add at these levels. Buy below $34. 3.9% dividend.