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Emera Inc. has garnered attention as a utility company with a strong yield, reported between 5% to 6.5%, appealing to income-focused investors, especially as interest rates decline. Despite facing challenges from recent hurricanes impacting its operations, experts view its long-term growth potential positively, given its focus on regulated earnings and transitioning to lower carbon energy sources. The company is well-positioned in Florida, a rapidly growing jurisdiction, enhancing its asset base and potential for earnings growth. Analysts recommend monitoring the stock closely for signs of support around key price levels and potential asset sales to reduce debt as catalysts for future performance. The overall outlook suggests optimism towards its future returns amid favorable market conditions for utility stocks.
Utilities are her largest sector weight. Defensive, regulated earnings. Secular trend as we transition off fossil fuels. Long-term growth opportunities. Biggest asset is in Florida, a good jurisdiction. Stock came off due to hurricanes. Yield is 5.5%, grows at a small rate.
There could be a space for utilities in a portfolio, given high dividends above 5% as interest rates decline. They have exposure to Tampa which the hurricane didn't hit badly. EMA is a good income vehicle.
It is well run and lower interest rates will be a catalyst for utility companies, There are issues with parts of the U.S. due to the effects of the recent hurricane which is really the latest in a series of hurricanes.
(Note short timeframe.) Defensive. Will benefit from interest rates coming down. Asset base should grow ~7% a year, dividend by 4-5% a year. Doing what they say they will. Additional asset sales to bring debt down; with interest rates coming down, may not need to sell as much.
Operates in Florida, which has one of the fastest-growing populations.
Near term, lots of $$ coming into utilities partly because of rate cuts. That's fine. Saw generational low interest rates in 2020, and we're going to see rates ratchet slowly higher for next 15-20 years. So inflation and rates are going to be stickier, making bond proxies harder longer term.
So you need to make sure you have dividend growth. Lean toward dividend growth, rather than high dividend but low growth. He'd prefer CPX, a smaller company with better record of dividend growth, technically a lot better.
Lower rates will be favourable to it. Valuation should probably improve over remainder of the year and into 2025. Decent upside for growth, dividend safer than some higher ones. Yield is 5.5%, not excessively high.
Some asset sales. Next asset sale should be a catalyst, as will interest rate cuts. Lower dividend outlook hurt, growth only 1%. Stock rose in July with the rotation and bond yields coming down. He likes power names with price to growth of about 1. This one doesn't, but 5-7% EPS growth plus dividend ~6% gives you that at a lot cheaper than H or FTS.
It is long term infrastructure opportunity. He likes transmission and utilities assets and is in Florida which is a high growth area. The dividend is still growing. In general buy stocks that have growth opportunities over the next decade.
They are good operators as a distribution utility. Lower rates are a tailwind. They are selling an asset later in the year to help pay down debt. Pays a 6 1/2% dividend.
A comparable utility to CPX, but with better growth and price to growth. Cheap. Asset sales by June would be a catalyst to multiple expansion.
Its guidance is 7 to 8% but the stock has come off so there is upside if they deliver on the guidance. Even if they didn't, the downside is limited. It trades at a good price and pays a 6% dividend.
Emera Inc is a Canadian stock, trading under the symbol EMA-T on the Toronto Stock Exchange (EMA-CT). It is usually referred to as TSX:EMA or EMA-T
In the last year, 18 stock analysts published opinions about EMA-T. 14 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Emera Inc.
Emera Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Emera Inc.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
18 stock analysts on Stockchase covered Emera Inc In the last year. It is a trending stock that is worth watching.
On 2025-01-28, Emera Inc (EMA-T) stock closed at a price of $55.
Bumps along the road, but the price has appreciated. Utilities are always levered, so as rates go up, there's more interest expense on the balance sheet and less profit hits the bottom line. Rates coming down have helped EMA's profit. Over time, expectation is that it will be the better choice. Yield is north of 5%.