
TSE:FTS
This summary was created by AI, based on 11 opinions in the last 12 months.
Fortis Inc. (FTS-T) is recognized as one of the largest regulated gas and electric utilities in North America, with a solid reputation for reliability and long-term income generation. The company's Q4 earnings surpassed expectations by approximately 6%, with a notable year-on-year revenue increase of 11%. Fortis is embarking on an ambitious $26 billion capital plan through 2029, aiming for a compounding growth rate base of 6.5%. Its dividend yield of around 3.5% has consistently seen annual growth, making it a credible option for income-focused investors. However, some experts view it more as a bond proxy with limited growth potential, favoring alternative investments with better diversification or growth prospects.
How Many Stocks does he Recommend Holding in the Utility Sector. Stocks in isolation miss the point. It depends on what utilities you are buying. He has almost a 20% weighting in utilities. He has FTS-T with huge diversification, yet has NPI-T which is a power producer around the world as well as domestic, although mostly off-shore wind. He owns 4 or 5 stocks.
Sell 25% of his telecoms and utilities like Fortis, and buy REITs? It's a good plan to diversify. Summit REIT is good. The utilities like Emera, Fortis and NPI-T are great stocks to own now--they're regulated, earnings growth backed in and the multiples are reasonable. They still have upside, and so do the REITs.
All infrastructure stocks have long-life assets. FTS has grown its dividend. Emera is slightly cheaper, but you don't need to switch over. One of his top picks will outperform Fortis. Expect just a little growth from Fortis this year. Take some profits at current all-time highs.