Fortis Inc. (FTS.TO)

This is attractive, but a bit expensive. Really well-managed. Would like to see it in the $36 range.

(Market Call Minute) He thinks it is a long term Canadian winner.

This is an income stock with a steady dividend with about 43 years on dividend growth. Doesn’t think that is about to stop. Low beta and high-yield.

You would not want to take money off the table until we see rising interest rates.

(Market Call Minute.) Likes their strategy and thinks they will do well in the US.

(Market Call Minute.) Very good Cdn$ tailwinds from their US operations, and have been running the business very well.

A good way for investors to get pretty stable dividends into their portfolio. It is going to be a defensive name, which is something you probably want to own in this market, given the volatility. They are making a US acquisition which will effectively increase the growth in the rate base from 5% to 7.5% in 2020. Dividend yield of 3.71%.

This is one he has not bought, because he thinks he gets a lot better return on some others. Also, the yield is kind of low. His company has this as a sector outperform with a $46 target.

Has 40 years of dividend growth. An exciting company all of a sudden with their acquisition in Arizona. A regulated utility with very little exposure to Alberta. Valuation is not the cheapest.

We operate in a world where interest rates are at thousand-year lows. There are a lot of investors who are looking for some kind of security in return, and this company has had a great history of raising its dividend and regularly. A lot of people are buying utility companies for yields. This company is a great way to do that. You could also look at Emera (EMA-T).

Too expensive. Pipelines have had a nice correction; utilities are still overpriced. His model price is $31. He would like to see this back to at least $32.50 before he got interested.

Just acquired a transmission company. The stock then got set back to where it had been. It is cheap and has decent upside potential.

Emera (EMA-T) or Fortis (FTS-T), or any other dividend stock in this market? Paying a dividend in this market is a great thing, however you need to look at the interest rate environment as well as the growth potential for each company. Utility in general is a slow growing business and both companies have made acquisitions in the US. He likes both, but Emera’s yield is a little bit higher and this one’s acquisition looked a little more expensive, and there are probably some digestive issues.

Expanding aggressively in the US. They are growing these assets. The share price has been whacked down recently. He has owned it forever. You don’t get many chances to by this company cheaply.

They will be huge in the transmission of electricity. Canada has its population focused so it is good to see them diversifying into the US. The market was jittery about their recent purchase, but he thinks it will be good or them.