Fortis Inc. (FTS.TO)

Seasonally we have finished the period for the utility sector. Good company, but he would be looking to move on as there are other opportunities to provide better growth potential.

Buy it and just sit on it. It returned about 15% total return over the last 20 years. He invested in TRP-T, but has no problem with this one.

(Top Pick Sep 4/14, Up 18.12%) He still owns it. They are increasing their dividend regularly and it looks like 7% this time. It was digesting previous acquisitions and now are reaping the benefits.

We might have one more little correction. The yield should support it. He thinks you are fine. You won’t make a fortune, but there is no harm done. This is low beta, income producing stock.

A bellwether name in the utility space. They all pulled back 20-30%. Some of them have had a very good run in the last few months. He feels these are long term holds. The pullback gives you an excellent entry point. He is a bigger fan of EMA-T in this space as it will have a much better earnings tailwind on it.

(A Top Pick April 30/14. Up 19.97%.) The deal they had made in the states has been working well. They have a public dividend growth target of 6%, which he feels is fully achievable. Have a very large capital expenditure program through to 2018-2019. That is what underpins the dividend growth forecasts. Good value here, so you could add to your holdings.

Owns ENB-T instead. FTS-T is a meat and potatoes position. If you have meaningful exposure to the sector, you should not buy it, otherwise he would be a buyer in this range if you are going to hold it.

They are going to do 9 Billion in projects. They divested themselves of non-core assets. Utilities are a good place to look at for return because they are regulated. You have a high degree of certainty they can grow their earnings each year.

This is a utility. When you see 15%-20% declines in these kinds of companies, you know it is market related. This is a good solid hold here, may be a Buy under $35.

This is a core holding in a dividend portfolio. They have gone into the US and bought UNS Energy, which is actually looking very good right now, and we are starting to see that come into earnings. At the same time they have divested their real estate business, both hotels and commercial real estate, so they are really focused on being a purer regulated utility. Low risk to earnings going forward. A good area to put some money to work.

Emera (EMA-T) or Fortis (FTS-T)? He owns both. Emera seems to be showing a little more get up and go. Both of them are good stocks to own.

(A Top Pick Aug 26/14. Up 10.34%.) Extremely well-managed. Doing a lot in selling off non-core assets. They are concentrating on adding to their rate base, particularly in their US operations. He is expecting that they will continue to do well. Almost a 4% dividend yield.

(A Top Pick Aug 24/14. Up 12.93%.) He sold half of this in December and the other half in the spring. His total return was around 32%. The risk/reward now is very good and he took out a half position at around $36 recently.

It has fallen down to its usual long term low and has a nice yield. It is a peculiar play. Any expectations of rising interest rates are in the 5-10 year area and these get valued off long term interest rates. This is a steady and long term grower. You won’t hit it out of the park, but you get a decent dividend and capital growth.

This is your “meat and potatoes” utility type name, which he likes. What is being regulated is a stable cash flow and, as a result, a stable dividend. Have recently expanded into the US through acquisitions and about 30% of revenues come from the US. He doesn’t see anything wrong with owning this company, especially if you are not overweight “interest rate sensitive” securities. His preference is Emera (EMA-T), which is very similar, but where you are paying a lower multiple on a valuation basis. (See Past Picks.)