Fortis Inc. (FTS.TO)

The sector in the US and Canada, has been soft. They usually pay dividends. Late 2017 most of these stocks broke down a bit on interest rates fears. It is not a bad thing if it consolidates. Give it the benefit of the doubt if you own it as long as it stays above the old low. If it breaks out you might want to buy more.

For the long term, this company will do well. It has increased its dividend for decades. He does not believe long term interest rates will rise much above 3%, so feels the recent headwinds are almost all played out. He anticipates this will be a good holding when a recession returns and interest rates are once again dropped to stimulate the economy. He would like to buy them at a slightly lower price.

FORTIS vs. ALGONQUIN: He owns only AQN and prefers it for its recent US purchase. Fortis isn't bad and the companies are similar. Maybe buy a little of each.

An income stock. Price is down only because of general distaste for interest sensitive stocks. Earnings are fine. Yield 4.2%. Estimated 6% dividend growth each year till 2021. 50% of its revenue is from the States. Focussing on organic growth, not acquisitions. Dividend growth profile and the yield make it really attractive. (Analysts’ price target is $48.08)

You want a utility with heavy exposure in regulated markets to ensure stablility. This stock has been under pressure, so it's attractive at current levels. Prdiects it'll hit $48 depending on interest rate hikes. (Analysts' price target: $48.08)

All the utility stocks have had a rough go this year. They dropped because of an expectation that interest rates would rise quickly. The stock has not bounced back even though interest rates have not risen as quickly as expected. He likes Fortis’ track record, their record of dividend increases and the strength of their management. A company like this will not double overnight--patience is required. They were one of the first to move into the US so there might be some growth from that. Primarily, though, this is a defensive name that will outperform the market when the market goes down and will generate steady income. If rates rise faster than people currently think, its price will suffer. (Analysts’ price target is $48)

There is a relatively tight $40 by $44 trading range. If it drops below $40.60, he would get out. He sees resistance at $44. Hold it for the dividend. Yield 4.1%.

A regulated utility. The tier 1 of the complex. Likes the way the company is set up. Negative $1.2 billion working capital. (Analysts’ price target is $48)

It is a great company. It is a growth utility. Because they are interest sensitive and interest rates have moved up, they have come down. There is nothing wrong with the company.

(A Top Pick Jul 21/17, Down 2.34%) The interest sensitives have been weak. Everyone is losing on the interest rate bet.

They're raising $500 million to fund their growth projects; they don't have enough capital growth to fund them. They get into a cycle: they increase their dividends to drive the stock price higher, make acquisitions, then buy more stock, then increase their dividends and so on. It makes it look like things are working out, like Enbridge. They're highly levered. They're not sufficiently funding their business. They sell more stock, but then they have to pay more dividends. If interest rates take a big hike, dividend stocks like this will be a disaster.

He owns both Fortis and Emera. They are attractive, stable, dividend payers with similar drivers. He slightly prefers Fortis.

(A Top Pick April 12/17 - Down 4.4%) Has come off along with all the other interest rate sensitive stocks. She thinks it is overdone here. She would be buying here. Electric utility company. 60% of its earnings come from US regulated. Very stable cash flow streams. Yield of over 4%.

A core holding. Diversified geographically across Canada and the U.S. across different jurisdictions. Rate-based growth of 5% for the next 3-4 years and dividend growth at 6%, plus half-billion-dollar projects which are added gravy. (Analysts' price target is $47.22)

Shares have been under pressure, as has anything interest-rate sensitive, over the past few months. Fortis is different from the pipelines and other energy-focused stocks because it is an all-contracted utility. However, continuing raises in interest rates will keep putting Fortis under pressure. There is nothing wrong with Fortis but it is not yet cheap enough. For dividend stocks, he prefers something like Enbridge and Inter Pipeline.