Opinions David Driscoll
Fortis Inc.FTS.TOHOLDJan 29, 2018
David DriscollStock price when the opinion was issued
As of Aug 12, 2026. Market Open.
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A core income stock for her, paying a 3.3% dividend yield which they've increase the past 52 years. FTS thinks it can grow its free cash flow 4-6% through 2030. Utilities benefit from the data centre build. Good to buy now after a pullback.
Christine PooleFavourite utility name. Rate base growth continues at 5-7%. The only thing stopping her from buying now is valuation. Paying 18x PE for only 5-7% growth. Might consider adding in the low $70s. One of the best utilities with the best management in the world. One you want to own forever. Yield is ~3.2%.
Rebecca Teltscher
If you want to be tactical, look for a bit better of an entry point. Really good company. Decent yield, pretty safe. Fairly valued, so doesn't see tremendous upside. Fine to buy-and-forget, as it'll grow into its valuation over time and do well.
If there's some upset in the market (he's not saying there will be), everyone's going to cram into utilities -- they're the opposite end of the coin from something that's more growth-oriented.
But in a choice between this name and EMA, he'd pick EMA for more upside.
One of the largest regulated gas and electric utilities in NA. Q4 earnings beat by ~6%, revenue up 11% YOY. Massive $26B capital plan through 2029 to grow rate base by 6.5% compounding. Not exciting, but reliable.
Dividend of 2.3% still solid, grows each year. Bond proxy, not growth story. 22x forward PE for mid-single-digit growth. Near 52-week high. 8/10 on fundamentals.
If you own it for the dividend or to sleep at night, you can continue to hold. She took profits and moved on. To buy in, wait for a pullback (at least under $70).
She prefers an infrastructure play such as BIP.UN.
It is their core utility holding. The dividend is 3 1/2% and it can increase that 4 to 6% to 2030. It is growing its capital spending plan to support its ability to increase its dividend. There is visibility in cash flow. Sixty per cent of its earnings come from the US and they are in regions where data centres are being built and it has the potential to increase its power contracts. It is a well positioned company and is great as a long term income stock.
Buy 6 Hold 7 Sell 4
Christine PooleLoves the space. Trading ~18x PE. Not crazy, but higher than historical norms. So she's buying AQN instead.
Rebecca TeltscherIf you bought in April around $55 and today it's trading ~$72, that's about 10+%. Plus you get a 3-4% dividend yield, with 3-4% dividend growth. Pretty good for a regulated utility, and he's happy to own a company that puts out high-single or low-double digit returns sustainably every year. There aren't many companies more durable than this one.
Lots of growth ahead, but it won't be 20% a year. He'd rather have 8-10% total return a year for 20 years than 20% for 3 years (and after that who knows what happens?). Shows what the expectations are out there, everyone's looking for bigger pops.
Ryan Bushell
Young investors don't care as much about dividend stocks, but they're really important. It's like collecting rent, instead of making money only once you sell a stock. The earlier they start, the more they reap the benefit of the compounding effect that takes place after 10, 20, 30 years of investing. Compounding is such a powerful tool.
It's hard to pick just one, as she likes a diversified portfolio. This name would be her second choice, after CNQ, because it's a little expensive right now. Stable utility growing 5-7% a year. Try to get it at a better price. Longest track record in Canada of dividend increases. Diversified jurisdictions. Increase in power demand is growing exponentially. Gives you exposure to AI but in a safer way, by owning the companies that produce the power.
Rebecca TeltscherGood long-term hold for income. Regulated natural gas and electric utility. Over 1/2 of revenues come from the US. Diversified. Very defensible and visible cashflow stream because it's regulated. Increased dividend for 51 consecutive years. In regions where data centres are being built. Yield is 3.81%.
(Analysts’ price target is $67.50)Christine PooleToday, this would be a hold. Currently above his buy price, wait for a pullback for new $$. People ran toward defensive names recently. Yield is 3.8%.
Chris Blumas
This will give you pressure from rising interest rates, and it will be difficult for these companies to raise their dividends at the rate they have been. The regulated side of the business is going to be told how much they are allowed to earn. A lot of Cdn utilities were buying US assets, which is going to be a bit of a boon for them over time. Canadian utilities growth over the last 5 years have been through acquisitions, which is not usually a good thing. You get good growth out of a utility stock when their rate base is growing, which is when they are adding customers organically. He doesn't have any problem with this company. It’s pretty conservative in nature. You are almost better buying the bonds then the companies, because if the market falls 20%, your bonds, which are yielding roughly the same, will keep their value.