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Most Anticipated Earnings: SLF-T, REAL-T and more Canadian Companies Reporting Earnings this Week (Nov 13-17)3 dividend stocks to fight inflationMarkets rebound after Monday’s virus sell-offThis summary was created by AI, based on 13 opinions in the last 12 months.
Emera Inc. is a geographically diverse energy and services company primarily investing in regulated electricity generation and energy transformation. Experts have mixed opinions regarding the stock, with some highlighting the low appreciation potential and high debt load, while others point out its defensive nature, low valuation, and potential for growth. The company has a strong presence in Canada, the United States, and the Caribbean, with a focus on transitioning to low carbon energy sources. Despite some concerns about margins and asset replacement cost, Emera appears to be a relatively stable investment with a focus on dividend income and future growth.
Return on capital predictable, but replacement cost of assets very high. Good for defensive investors, but not going to appreciate capital at high rate. Lots of capital required to grow business creates situation of low returns. Politicians and consumers putting pressure on margins of business. Falling interest rates good for the business (high debt load in business). Overall, better options for investors out there.
Could hold for dividend. Technically, can't argue with the downtrend. Hopefully, stock will find support around $45. If yes, there's consolidation and maybe downtrend is over. Wouldn't jump all over it, there's perhaps hope if doesn't break $45.
Editor's Note: The question was on utilities and her response included Fortis and Emera. Utilities are lower volatility in the long term and come with a nice yield. There is more growth ahead that we haven't seen for the past 5 to 10 years. Rising rates give a better ROE. She likes Fortis and Emera with Emera showing a little more growth and a yield of 6%.
It is a different company now with more assets in the U.S. than in Canada. In Florida they can ask for higher rates just based on its population growth. They are targeting 7% rate-based growth and 4 to 5% dividend growth. It is defensive in nature and there is a big opportunity because of its very low valuation. Buy 8 Hold 6 Sell 2
(Analysts’ price target is $53.93)All utilities have seen share prices fall since the spring, being bond proxies given rising interest rates. People are buying bonds, and selling utilities. Now is a good entry point at 15x PE, and pays over a 6% dividend yield, which has grown 17 straight years. Low risk, because 95% of their business are regulated and there's little cyclicality (recession-resilient).
All energy stocks, from renewables to this one, are down. Pays a roughly 6% dividend, and it's safe. Generally, you can start to buy these. It's all about interest rates, which continue to rise. Dividend stocks are competing with GICs and other bank deposits offering 6% yields. Doubts that any utilities will cut dividends, but the share prices may come down further. You can buy a tranche, cautiously.
Great Canadian company.
Hard assets, but current share price too high.
Waiting for share price to fall ~$10.
Very safe dividend.
Electricity demand in North America continues to rise. Emera will sort out issues in Nova Scotia. Their New Meico and Tampa centres are growing, needing more electricity. It pays over a 5% dividend.
(Analysts’ price target is $59.31)EMA will experience lower earnings this year, with a recovery in 2024. Growth is relatively low, but this is common for the industry. The Q1 was fine and exceeded expectations. We see nothing overly wrong with the company. Payout ratio is about 73%, so there is not huge room for dividend increases, but this may change next year. We think it is mostly a sector and higher-interest-rates rate problem. The stock is up 4% this year, more or les inline with the TSX's return.
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The big question is: What will happen to interest rates? These stocks are sensitive to them. Rates have to rise above inflation in order to slow the latter. We are not there yet. If inflation takes off (50/50 chance), then Emera won't do well. This is worth $39.
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, 8 stock analysts published opinions about EMA-T. 6 analysts recommended to BUY the stock. 1 analyst 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.
8 stock analysts on Stockchase covered Emera Inc In the last year. It is a trending stock that is worth watching.
On 2024-03-28, Emera Inc (EMA-T) stock closed at a price of $47.38.
It has struggled and has more debt than others in the sector. He is expecting them to sell off some of their assets which should help, along with rate cuts. The dividend is safe. It is at a good entry point.