Fortis Inc. (FTS.TO)

This is one that he would stay away from as he thinks the P/E ratio is far too high relative to their yield. (20X current earnings and 19X forward.) 3.8% yield.

Within the interest sensitives, you want to look for those with the best ability to increase what they are paying. Utilities are more bond like. He would tend to focus on things with more dividend growth attached to them.

3.9% yield is fairly safe, making it somewhat defensive. Still waiting approval to acquire CH Energy (CHG-N) and still waiting for the outcome of the BC regulatory proceedings. He will be continuing to hold his stocks.

SHORT. This has exhibited 5% earnings growth but the only way they are getting future growth is to acquire. Because their dividend payout is so high, when they acquire, they have to raise money in the market.

Favours Emera over Fortus for dividend growth.

He owns the preferred. Prefers others in the space. This is a good solid hold, though.

A bit of a disappointing stock over the last while. Expects you will be getting high single digit overall returns over the next 3 years.

(Market Call Minute.) He is warm towards this. Prefers others.

Hasn’t shown a lot of growth in a long time and, in fact, its earnings have been diluted the last couple of years because they have had to issue shares to pay for some big transactions. Dividend growth has been very poor. (See Top Picks.)

Nice and steady. Have been increasing dividends every year for a long time. Looking at their underlying businesses, it is clear they are not a fast growing business. Big growth comes from acquisitions, which is getting expensive. 3.6% dividend.

(Market Call Minute) Not going to be one of the most exciting stocks to own. Pulled back in the last few days.

Has held for twenty years and is up many 100s of percent. Some criticisms about diversifying in the Caribbean. You can buy it here.

This is sort of a 2 piece business. Real estate business on top of utility business. He prefers businesses that are in one business. It doesn’t meet his hurdle rates for his mutual fund portfolios.

(Top Pick Dec 30/11, Up 2.99%)

Probably very good. You are looking for a breakout above $34-$34.50. That would be the signal to not only buy a bit but get ready for a major breakout. Chart shows a flat top but rising on the bottom and any kind of a breakout would suggest it was going to have a major up leg. Use a stop loss at around $32.