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