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TSE:H
This summary was created by AI, based on 3 opinions in the last 12 months.
Hydro One, trading under the symbol H-T, presents a mixed bag of opinions among experts. One review highlights it as a safe choice for a Tax-Free Savings Account (TFSA), especially during market stress, emphasizing the robustness of utility companies in terms of earnings, debt capacity, and dividends. Another expert points out some drawbacks, such as its relatively low dividend yield of 2.5%, which is the lowest among its utility peers, along with its operational limitation to Ontario and a higher price-to-earnings ratio compared to competitors. However, there is an acknowledgment of its strong visibility and clean operational narrative in the utility space. Overall, while it has its merits as a defensive stock, there are also concerns regarding its yield and valuation relative to others in the sector.
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.