Fortis Inc. (FTS.TO)

Has had 44 years in a row of dividend growth. Just announced a 6.25% increase, $1.70 a share. Our world is going to need electricity 44 years from now and this company has a wonderful installed base. 3.7% dividend yield.

(A Top Pick Oct 12/16. Up 14%.) An electric utility, so it is insulated from commodity exposure. She likes the US acquisition they did, which really expanded their presence in the US. 60% of earnings will be coming from the US. They’ve indicated they can increase their dividend by 6% annually until 2021.

(A Top Pick Feb 21/17. Up 6.89%.) Recently sold this.

Selling very, very close to its low P/B value for the past 10 years. The stock is cheap. A nice defensive company, but has some offensive qualities in a rising market. Dividend yield of 3.5%. (Analysts’ price target is $50.)

This has done well. People tend to pile into these things after they’ve done really well. After having a really good run and making some really good acquisitions, it is still not a bad multiple to its peers, at 17X, but he is only modelling 3.5% EPS over the next couple of years. There are better names out there.

An electrical utility company, generating electricity. You are not going to get a massive up-spike in that kind of company. You will get great and stable income as well as growth over the longer-term. Has been very successful in going into the US and buying assets. Extremely well-managed. They raise their dividend consistently.

He likes this very much. They’ve done a great job in making acquisitions in the US. This is one of the dividend aristocrats of Canada. Thinks they’ve increased dividends 42 years in a row. It is not all that expensive, and is a great, long term investment.

One of his favourite utilities. Has a large US presence. A big part of their M&A growth is behind them. They made 2 major acquisitions in the last few years, one of them being in Texas, so capital expenditures might be going up a little in the near term. They are much more into energy transmission as well as generation. Dividend yield of 3.5%. (Analysts’ price target is $50.)

Historically this had a very strong seasonality during the summer as the rest of the market languished. It only does very well until the beginning of November. Chart shows it has already established an upward trend, and it would be nice to see it move above its current level, which would confirm that it is in an upward trend. A good seasonal trade right through until the beginning of November.

Rising interest rates traditionally have a negative impact on them, but they have the longest streak on the TSX of raising their dividend. It negates some of the small rise in interest rates. They have some non-regulated assets. He likes it and it is a core holding for him.

(Market Call Minute.) Utilities are fine to own. You just have to be cognizant of the risk of rising interest rates.

He likes it and it is well managed. You need a company that is going to grow its dividend. It is a growth/yield play.

(A Top Pick Aug 16/16. Up 12.58%.) Continues to like this. It has held up well relative to a lot of other interest sensitive names. She likes the US acquisition they did earlier on. Dividend yield of about 3.5%.

Has been under some pressure as the market anticipates rising interest rates. Thinks the market is overreacting and interest rates are going to stay relatively low, because inflation is not rearing its head. On that basis, it is probably not a bad Buy in this range. Well run, and one of the more growth oriented utilities. You should be buying this for the safe dividend.

Utility oriented stocks tend to do very well in the summer. This had a good move this year, but is now having some difficulty. On a seasonal basis, it is okay to hold. Historically when you get into the fall, you want to choose something that has more beta. For now stick with it, but if there’s any kind of technical rolling over, then look for better opportunities elsewhere.