
TSE:EMA
This summary was created by AI, based on 10 opinions in the last 12 months.
Emera Inc (EMA-T) is viewed positively by experts, with many citing its strong performance in the utility sector and its focus on stability and dividends. The company is seen as a safe investment, particularly with its growth in the U.S. regions, such as Florida and Mexico, which are benefiting from increasing demand and population growth. Despite some concerns regarding its historical leverage and a stretched payout ratio, recent reviews indicate a more favorable balance sheet. Analysts expect consistent dividend growth between 3-6% over the coming years, further enhancing its appeal as an income stock. Overall, EMA is expected to continue providing value and stability to investors, making it a worthwhile consideration in a diversified portfolio.
EMA will experience lower earnings this year, with a recovery in 2024. Growth is relatively low, but this is common for the industry. The Q1 was fine and exceeded expectations. We see nothing overly wrong with the company. Payout ratio is about 73%, so there is not huge room for dividend increases, but this may change next year. We think it is mostly a sector and higher-interest-rates rate problem. The stock is up 4% this year, more or les inline with the TSX's return.
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Electricity demand in North America continues to rise. Emera will sort out issues in Nova Scotia. Their New Meico and Tampa centres are growing, needing more electricity. It pays over a 5% dividend.
(Analysts’ price target is $59.31)