TSE:H

Hydro One (H.TO)

56.17
+0.31 (0.56%)
as of Jun 10, 2026, 8:00:00 pm Market Open.
154 watching
0
Investor Insights
star iconJun 11, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Hydro One, identified by the symbol H-T, has garnered mixed reviews from various experts. While some appreciate the strong visibility and clean narrative surrounding the company, others express concerns regarding its low dividend yield of 2.5%, which falls short in comparison to peers within the utilities sector. The stock trades at a higher price-to-earnings ratio of 23x, further contributing to its mixed appeal. Although it has seen downward pressure this year, some experts view it as having potential for long-term growth due to its attractiveness amid a market that currently favors defensive plays. Overall, while there is merit in holding Hydro One for its regulatory strengths, the focus is shifting towards pricing power and dividend growth in light of evolving economic conditions.

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Consensus
Mixed
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Valuation
Overvalued
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Similar
Fortis,FTS
DON'T BUY

Likes it. OK growth rate. Expensive. AQN and FTS are trading at better levels with nice growth rates and dividend growth. Pretty safe area, but a mistake to buy at the top of the range.

PARTIAL SELL
He buys utilities to generate income. Yes, they are boring, but this sector has had an incredible run in the last 12 months. This is overbought now and would take profits. Also, the yield has dropped to 3.3%, which is a negative.
DON'T BUY

Ontario's current government has made many changes to the Hydro board, a gong show. He is wait-and-see with Hydro and prefers Emera as a utility, which offers better growth and doesn't suffer government meddling. At its core, though, Hydro is a great business as a regulated utility.

DON'T BUY

They've done well this year, especially with less government influence. He prefers AQN, Fortis and BEP in this space who have better growth and offer wider diversification. H-T is Ontario-centric. It's okay if you hold it.

DON'T BUY
As a dividend stock Fine as a dividend stock, but not fine as a stock. They tried to do a US acquisition, but found out they couldn't. They have large capex, too. Dividend is safe and has been doing better lately than he expected, but that could be a result of a yield play. Doesn't interest him.
DON'T BUY
Pays a good yield, but there isn't much growth. She wants utilities for the yields but also cash flow growth. The Ontario government still owns 47% of this company so it's possible they could sell down and get involved in the company's operations.
COMMENT

Sell half of my holdings and buy a utility? It pays a 3.9%. The shares have done well since they abandoned a bid to buy a Washington utility. There's little growth here, though. He prefers Capital Power which is a little riskier and pays a safer dividend. Also look at Innergex or a REIT, if you want income.

WEAK BUY
This was supposed to be a sleepy, easygoing utility. They did a deal in the US that was not seen that positively. It trades at a discount now. He thinks the discount is warranted due to management, who needs to be trusted. They need to articulate their strategy and then have some wins. He is seeing better opportunities than this one.
COMMENT

H vs. CU Hydro One had serious issues, but a decent dividend. If he had to pick one right now, he'd pick CU. Looks a bit steadier. Hydro One is in nosebleed territory, and looks as though it's starting to come off. CU is consolidating, and looks to go higher short-term. $35 is a good stop level to sell CU, $22 for Hydro One.

DON'T BUY
It is a lot of natural gas, compared to other renewable energies. It has a fairly low environmental score. They are not a leader or ahead of the curve in transition to renewable.
DON'T BUY
He owns Fortis, Emera and NPI, so he has enough utilities. The business in Ontario is good with possibility of expansion. But the problems with the Ontario goverment scare him off. Good dividend, but weaker dividend growth than its peers.
DON'T BUY
It needs to break out of a very sideways chart that happened through 2018. There was a slight downtrend before that. Doesn't see a catalyst to spark a breakout.
TOP PICK
There was a change of government in Ontario. The CEO and Board left but that cloud over the company is fading away. They provide distribution and transmission of electricity. They are trying to make an acquisition of a US company. If the US acquisition comes to fruition, the Ontario province stake becomes lower. The concern of political interference is overdone. Yield = 4.7% (Analysts’ price target is $20.92)
BUY
Things have settled down on this stock now after a rocky summer. Its yield is stable. He sees this as a decent larger-cap play.
DON'T BUY
A political mess. A typical utility with a 3.5% dividend that should grow. But with high electricity rates in Ontario, no he wouldn't touch this.