Fortis Inc. (FTS.TO)

Utility stocks are very, very expensive. He thinks a brutal 6 months is coming. His model price is $31.75, a negative 14%.

This is a regulated utility and he doesn’t think there are any issues with the dividend. Doesn’t expect there is a lot of growth in the near term and there could be a bit of pressure if rates start to rise quickly or unexpectedly. The business is sound.

4.1% dividend. Assets in the US and Canada. Bought a regulated utility in Arizona two years ago. Great history of paying dividends. It is well run and the concern over interest rates is overdone. They have good growth potential outside of Canada.

Had about a 16% beat on their recent quarter. In general he under weights utilities, because on average their valuations are quite high and will be sensitive to interest rate increases. They have been part of that defensive stock portfolio that a lot of money has flowed into. However, this stock scores pretty well for him. It is a very low volatility, stable stock, and those do tend to outperform. Also, has good price momentum. Dividend yield of 3.9%.

A very consistent, kind of boring business. Generates set rates of returns. In the low interest rate environment that we are in now, the income that they pay out is very attractive. The recent growth has been in the US, geared towards the US. Consistent dividend growth. 4% dividend yield.

This is a key holding for him. If you are a dividend investor, you want to own some regulated utilities. Has a good stable yield. Also, diversifying outside of Canada into the US.

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.