Fortis Inc. (FTS.TO)

(Top Pick May 17/16, Up 11.21%) The period of strength is until the end of October. It just broke a multiyear high. Continue holding until October.

Pays out a good distribution. They make big acquisitions. The past 2 have been outside of Canada, which will take a while to digest. Once they get going, it’s very similar, slow and steady. They continue to increase their dividend. Feels that for the next year or 2, interest rates are going to stay low, which is positive for utilities.

(Market Call Minute.) Has US exposure and has been doing everything right. There is more to go on this. He has a target price of $48 on this, which he thinks will happen over the next couple of years.

(Market Call Minute.) Pretty darn defensive, so he likes it.

Just keep on holding it which he has done forever.

This grows its dividends 5% to 7% per year. He is quite sure that will continue. In the midst of making a big acquisition in the US, which will build in more dividend growth. He is very positive on the stock.

Sold his electric utilities because of destructive technology. If the battery packs get on to every house, then everybody comes off the electric grid. It is not going to happen tomorrow, but it could very well be in the next 10-20 years. They have been making acquisitions in the US, which has him concerned to some degree. Currently their dividends will probably rise 10%, because their acquisitions are going to add to the rate base.

A few years ago they made a big bet with a large purchase in Texas, and now they are buying ITC, a transmission company with a lot broader exposure. Despite the fact that they have had to finance this with a fair amount of debt, he thinks this is another transformational change for the company. It makes it a much more regulatory diversified company.

This is too expensive, but it is one of those well-run companies. It’s a utility. Management has shown itself to be quite capable in difficult times. Probably at the top of its range right now. If it sold off by $2-$3, that would be in a buy range. A very safe stock. Dividend yield of 3.7%.

Has some warm feelings for this stock. It has been pretty volatile, but still trading within ranges. There is a trend line going up from September, and if it can break out from about this level, there is a pretty big upside for it.

Income replacement is a key theme in this market. FTS-T is a wonderful company that has raised its dividend forever. There is no sign of it stopping. This is not going to be a rocket ship if the market works its way higher. It will have significantly lower volatility.

Electricity transmission and gas utility. She likes this. Recently announced a US acquisition which will help the growth profile. Thinks they can grow earnings in the mid-single digit range, and they’ll grow their dividend in that same range. Yield of around 3.5%.

Seasonally, from about now right through to October, this tends to outperform the market. Technically it is very close to its all-time high. It is forming a gorgeous triangle pattern, and it all has to do with their recent acquisition. If you look at the on balance volume, somebody is buying a lot of this stock.

They have done well. It is hanging around the highs and investors are not afraid to pay top dollar for the stock. It will likely go higher.

A good, solid utility. Has a 9%-10% potential growth going forward this year and next. Price to cash flow ratio is on the high side. They are doing some interesting stuff in BC and out west. A creative management which is diversifying. Has a reasonable yield.