
TSE:EMA
This summary was created by AI, based on 9 opinions in the last 12 months.
Experts generally view Emera Inc (EMA) positively, emphasizing its strong dividend yield and growth prospects, especially in the U.S. market. Many analysts appreciate the company's stable performance and reliability amidst fluctuating commodity prices, particularly highlighting its operations in Florida and Nova Scotia. Some see the potential for capital gains and dividend increases as regulatory changes may uncap rates in Nova Scotia. However, concerns about past leverage issues and current valuation levels were mentioned, with suggestions that it might not be the best-diversified utility available. Overall, the sentiment remains optimistic for those looking for a stable income-generating stock.
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)