TSE:H

Hydro One (H.TO)

58.40
+0.14 (0.24%)
as of Jul 31, 2026, 8:00:00 pm Market Open.
155 watching
0
Investor Insights
star iconAug 1, 2026, 12:00 am

This summary was created by AI, based on 4 opinions in the last 12 months.

Hydro One (H-T) has received mixed reviews from various experts. One reviewer highlights the stock as a safe pick for a Tax-Free Savings Account (TFSA), emphasizing that utilities tend to be robust during market stress due to their strong earnings power and ability to handle higher debt loads, alongside offering a healthy dividend. Conversely, another expert critiques Hydro One for providing the lowest dividend among its utility peers at 2.5% and notes that it only operates in Ontario, which limits its geographical diversification. This reviewer appreciates the income potential of utilities but prefers companies with operations across multiple jurisdictions, especially since Hydro One trades at a higher price-to-earnings ratio compared to its competitors. Despite this divergence of opinions, one consistent theme across several reviews is the recognition of Hydro One's clear business strategy and strong visibility in its market segment, particularly within the regulated utilities space.

consensus icon
Consensus
Mixed
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Valuation
Overvalued
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Similar
Fortis,FTS
HOLD

Great company and business. Trading at 18x. Growing at peer average. Better names in sector to own. Would recommend holding. 

BUY

The outlook for utilities will improve as interest rates decline. They continue to raise their dividend, and they have a good track record.

DON'T BUY

Good quality. Likes it, but competitors in the space are a bit cheaper. Trades at 18x. Look to EMA, FTS, or ALA. As beaten-down dividend plays, the whole sector is a buy, but other stocks are cheaper.

DON'T BUY

Is being hit like all utilities now by high interest rates. Doesn't see a growth catalyst for this stock, so this is really a bond. There's demand for new energy, but building nuclear plants take a long time.

BUY

The chart shows a long history of higher highs and lows. It's now testing its last low and will probably find support here and continue rising.

WEAK BUY

When it was partly privatized, it gave investors an opportunity to receive a yield, which has been consistent around 4%. But they're constrained and can't easily raise rates, though rates have jumped in the past year. This is solid for the yield, but doesn't see capital appreciation given where interest rates are.

BUY
Slow and steady utility name that reflects growth in Ontario. Good name to own if you are looking for dividend income. Power demand not going anywhere. Won't see major growth in share price, but is a steady hold.
DON'T BUY
Not a big fan - it is a politicized company so there will be limited passing along of costs. It is range bound.
BUY
Steady eddy. If you're looking for steady dividends to fund your retirement or your lifestyle, stocks like this are your baby. As bond prices go up, it puts pressure on the utility stocks. Rock solid. Utilities are not cutting dividends.
BUY
Some avoid utilities as interest rates rise. However, Canadian utilities have done very well due to the Russian invasion. So, investors seek defence in this sector. Valuations here are a little rich. He likes Hydro One for stability. He also likes clean energy like AQN, which he trimmed a little. Clean energy will come back this year after a strong 2020 and maybe not as strong as 2020, but still good.
BUY
Management has put governance issues behind it and instituted good policies. Good mid-single-digit growth, healthy dividend yield, favourable jurisdiction of Ontario. Good RRSP candidate. Not too much of a headache for volatility and downside. For him, better opportunities elsewhere.
DON'T BUY
H vs. AQN He's been adding to AQN. Valuations have come back in the renewables, with more upside in the next year or two over basic fossil fuel companies. AQN has a 4% dividend yield, valuation is good, Kentucky Power acquisition is another leg of growth.
DON'T BUY

It's performed well in the past 12-24 months. Ontario is one of the most difficult energy jurisdictions around. Hydro doesn't offer much growth, but it's stable. The dividend isn't enough to excite investors, so he prefers Fortis and others. It's okay to hang onto shares.

DON'T BUY

Very defensive cashflow streams. Compared to Fortis, Hydro One has geographical limitations being based only in Ontario. In terms of rising interest rates, it remains low and it is not an immediate concern. Look for a utility that has the ability to increase dividends annually.

HOLD

He favours Fortis and Algonquin. H-T is a very stable business model. They had aggressive growth projects but they didn't work out. Would like to see more diversification of cashflow since it is very dependant on Ontario. It is a good, durable business. Would not sell it but it may not perform as well as others. Growth platform is limited.

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