TSE:EMA

Emera Inc (EMA.TO)

67.81
+0.16 (0.24%)
as of Sep 29, 2026, 5:12:33 pm Market Open.
735 watching
0
TOP PICK
A growth utility in Nova Scotia. It made an acquisition into Florida and in New Mexico. A good dividend grower. A safe haven. Yield 4.19% (Analysts’ price target is $55.86)
HOLD
He owns this. The payout ratio is about 30%, so the dividend appears safe. The company is expected to grow by 2%. Cash flow is negative at the moment. With the dividend, he would hold. Yield 4.37%
TOP PICK
Just bought it. Multiple expansion could expend even further as lower interest rates encourage investors to buy predictable revenue streams (6-7% growth) and dividend growth (5%) like EMA. Pays a 5% dividend. 95% of this business is regulated, so there'll be consistent earnings. And they're in the Florida market. Also, ESG investing is picking up, and EMA ranks highly here.
WEAK BUY

Likes it. Reasonably constructive on the power names. Decent growth profile. But in the sector, why wouldn't you buy Algonquin with a better growth rate, better multiple. But both are reasonable here.

SELL
Their balance sheet is a mystery. What happened in 2017? Was something spun off? $35.69 is his model price, far below current pricing. He doesn't follow EMA. Their earnings relative to balance sheet are way overpriced (and so are their peers). You had a good ride, so sell it now. This has gone too far, too fast, after hitting an all-time high.
BUY
If you bought it for a trade, congratulations, and you may want to take profits. If you didn't own it, this is the time. It's gotten through 3 years of toppy resistance.
BUY
Emera vs Fortis Utilities have done quite well after a weak 2018. These are not sexy growth stories, but they will let you sleep at night and pay a good, rising dividend.
TOP PICK
A new holding of his. It's a defensive stock. Trading at a reasonable 18x multiple. Several catalysts hitting them at once. Boasts nice 4-5% earnings and 6-7% earnings growth. (Analysts’ price target is $52.07)
BUY
Yes. It's taken a backseat to Fortis, but they go back and forth. The problem is EMA makes acquisitions, then pays down debt as they are currently. They have a major construction business in Tampa, so they're investing back in the business. He owns both companies, both good dividend-payers, both good buyers in the States.
TOP PICK
A utility that will offer less risk in the near term. Dividend payout ratio of 33%. Cash flow growth is increasing. A 5% earnings increase is expected. Yield 5.3% (Analysts’ price target is $46.87)
COMMENT
Sell Visa to buy more EMA or buy an American utility? He's struggling with what to do with EMA. They just cut their dividend growth to 3-4%. They continue to do good business in the SE U.S. It's stable and steady. He wouldn't buy more Emera or American utilities. If you want exposure to U.S. utilities, buy ALA instead, which has been beaten up and has a lot of U.S. exposure. Also, consider Canadian banks, the cheapest sector now. Visa: an oligopoly; take some profits; he doesn't have a strong opinion of Visa. 5.25% yield.
TOP PICK
Counter cyclical to the market. Beautifully diversified. Cheap. Doesn't have the Ontario Government sitting over top it. (Analysts’ price target is $46.43)
BUY
Canadian utilities tend to bottom as markets are peaking. He thinks this is a signal that investors are looking for safer havens. These will be attractive for 2019.
COMMENT
Likes this and Fortis among Canadian utilities. But be careful going into winter--we're forecast for slightly warmer this year. Maybe take some profits off the table.
COMMENT
We are seeing a new secular uptrend in 10 years bonds. It will put pressure on bond proxies like EMA-T. If your time is more than 3-6 months then okay, but if longer then look at something with pricing power like telcos or REITs.
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