Fortis Inc.

FTS-T

Top choice for a utility stock in Canada. Skilled at making acquisitions. Longest run, with Canadian Utilities, of raising dividends for over 40 consecutive years. Safe and steady, though upside may not be as high as some others. As long as you're prepared to hold for the long term. Yield is 3.6%.

Emera vs Fortis Utilities have done quite well after a weak 2018. These are not sexy growth stories, but they will let you sleep at night and pay a good, rising dividend.

Utilities are a good place to be in the late cycle. But Fortis is expensive here.

$37.56 is his target price. He'd buy it at $39, $10 below the current price. We might see that. Not a fan of this.

Likes both, but gives the edge to AQN. AQN will continue to outperformer Fortis, but both are well-run and can deliver higher returns.

He bought it last October and has been pleased with it. The competitive dividend grows 6% yearly. It's an extremely low-risk business because most of the revenue comes from regulated utility rates, thus protected from market ups and downs. They grow by acquisition and is now one of North America's largest utilities. He may sell (part of) it on valuation if the shares run by dramatically but unlikely with a utility.

Problem is, Fortis has shot up in price, like all dividend stocks. It's been raising its dividend for 40 years. He'd rather buy Keyera or Pembina which offers more growth. But definitely hold FTS if you own it.

(A Top Pick Aug 09/18, Up 19%) At the time, the sector was undervalued, so this and others like AQN-T have since really moved up. It was a way to get income, but he also saw growth in FTS. He recently sold it after it reached his price target. Their growth outlook stretches several years and it pays a fine dividend. Growth will continue in this space.

Late cycle you want to own utilities and defensive names. Looks fantastic on a chart, just picked it up. Nice breakout to new highs. A high usually produces new highs eventually. Could also look at XLU or TransAlta. Nice little dividend, tidy company. Good, reasonable hold for quite a while. Yield is 3.61%. (Analysts’ price target is $50.53)

Which utility to buy? Utilities have recently done well with a rotation to safety (like telcos). He likes Fortis, but it's trading at a 52-week high, so wait for a pullback, unless you have a 10-year horizon.

(A Top Pick Mar 07/18, Up 20%) A core holding for him. They pay a good dividend. They've bought good assets in the States. They're geographically diversified, so are no longer 100% Canadian, but 50/50 with America. Good balance sheet. They raise dividends 6-7% annually.

Solid and diversified. A good dividend grower at 7% annually. They have $17 billion of capex over the next three years. Growth rate of 7%. (Analysts’ price target is $49.48)

One of his favorite holdings. It has increased the dividend for over 40 consecutive years. You want to own this forever.

FTS-T vs. Utilities vs. Telecoms. It is an easy choice to Telcos. They are both regulated. Both steady state, stable businesses. BCE-T vs. FTS-T. He is long BCE-T. It is has good valuation here. 16 PE. FTS-T has 13 times. You should do better in Telecoms. T-T is warnings of implications f the Chinese telecom is banned from Canada.

There will be either 1 or 2 rate hikes, not 3 or 4. As long as there are no rate surprises, Fortis will be fine. Single digit return.