# FTS vs CU vs EMA in TFSA



## gibor365 (Apr 1, 2011)

I hold in our TFSAs FTS, EMA, CU , more or less equal positions.... Still have contribution room in both TFSAs, was thinking to add one of the Utilities above.
On the first glance, FTS and CU are cheaper.... Both gonna raise dividends soon (FTS earlier).
What do you think is better at current prices?


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## Eder (Feb 16, 2011)

I like FTS more only because of its expansion to the US and proven Borg abilities to assimilate new businesses.


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## doctrine (Sep 30, 2011)

I own FTS; a big factor are their US utilities, including ITC - the largest privately owned interstate distribution utility in the US, nearly as big as Hydro One but with larger returns on equity and growth. A+ assets for sure.


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## james4beach (Nov 15, 2012)

For what it's worth, here are 15 year annual returns of each of these (total return including all dividends) according to Morninstar

FTS: 11.44%
EMA: 9.65%
CU: 9.59%

They all seem like fine holdings. CU price seems a bit more depressed than the others right now.


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## agent99 (Sep 11, 2013)

Many would own utility stocks for income purposes. As interest rates rise, some investors might move into fixed income. This could affect the dividend stocks with lower dividend yields more. In this case, that would be CU and perhaps that is what has already happened? Fortis has the highest dividend yield and has also apparently outperformed the other two. We own EMA and FTS and may add a little to them, even although this doesn't seem the best time to be buying equities.


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## john.cray (Dec 7, 2016)

agent99 said:


> Fortis has the highest dividend yield and has also apparently outperformed the other two.


Are you sure about this? I see FTS has 3.50% yield while EMA 4.38%. Where did you get your data from?


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## like_to_retire (Oct 9, 2016)

agent99 said:


> Many would own utility stocks for income purposes. As interest rates rise, some investors might move into fixed income. This could affect the dividend stocks with lower dividend yields more. In this case, that would be CU and perhaps that is what has already happened? Fortis has the highest dividend yield and has also apparently outperformed the other two. We own EMA and FTS and may add a little to them, even although this doesn't seem the best time to be buying equities.


I think you meant to say Fortis has the _lowest_ dividend yield.

EMA = 4.38%
CU = 3.65%
FTS = 3.50%

ltr


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## james4beach (Nov 15, 2012)

agent99 said:


> Many would own utility stocks for income purposes. As interest rates rise, some investors might move into fixed income. This could affect the dividend stocks with lower dividend yields more.


It's impossible to forecast what's going to happen with interest rates. The best action is probably to pick whichever utility stocks you think are best, but avoid having too much sector exposure. A "dividend portfolio" or any stock portfolio should avoid concentrating too much in any one sector, whether it's energy trusts, utilities, or banks.


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## My Own Advisor (Sep 24, 2012)

CU stock price hasn't moved much. I'd say it's due to rise. Hard to go wrong with either but I also like FTS upside more. If in doubt, go FTS.


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## agent99 (Sep 11, 2013)

Sorry, I was in rush to make my tee-time and got those dividends wrong - shouldn't rely on my memory  

CU stock price hasn't done much for past 4 or 5 years. FTS and EMA have shown growth. Increases in interest rates (as forecast ) usually affect utility stock prices, so I would not expect this growth to continue. Maybe FTS and EMA are more likely to have a pull back as interest rates rise? I might just add a little to our EMA on any pull back because of it's higher dividend. Happy to collect 4% plus on my cash invested.


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## Argonaut (Dec 7, 2010)

Fortis is likely the safest choice amongst the major names, hard to go wrong with their track record and assets. Most interesting utility pick for me may be Algonquin Power & Utilities (AQN), though. Growing its business and its dividend at a much higher rate. They also are diversified into water distribution, which I like a lot.


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## gibor365 (Apr 1, 2011)

Argonaut said:


> Fortis is likely the safest choice amongst the major names, hard to go wrong with their track record and assets. Most interesting utility pick for me may be Algonquin Power & Utilities (AQN), though. Growing its business and its dividend at a much higher rate. They also are diversified into water distribution, which I like a lot.


I was thinking also about AQN, but I have too many holdings already, in utility space FTS, CU, EMA and SO:NYSE, so just palnning to add to existing position


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## 1980z28 (Mar 4, 2010)

I own all of the above,in my opinion i would add more FTS or EMA both will continue to grow


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## agent99 (Sep 11, 2013)

1980z28 said:


> I own all of the above,in my opinion i would add more FTS or EMA both will continue to grow


I own most of them too.

You may be right, but what reasoning led you to believe that they will continue to grow? And is that in short term or longer term? 

My gut feel is that utility stocks will lose value in short term. But they will continue to pay their dividends, so I will hold them regardless.


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## londoncalling (Sep 17, 2011)

Am considering placing an order for either EMA or FTS. I dumped CU in December and hold AQN. If you were to buy one or the other which would you choose and why? I know that both is an option but as I already have AQN I am not interested in adding both. I am leaning towards FTS but the recent drop in EMA has me looking like a deer in the headlights.


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## Raggedy Dandy (Mar 12, 2020)

londoncalling said:


> Am considering placing an order for either EMA or FTS. I dumped CU in December and hold AQN. If you were to buy one or the other which would you choose and why? I know that both is an option but as I already have AQN I am not interested in adding both. I am leaning towards FTS but the recent drop in EMA has me looking like a deer in the headlights.


I have added EMA to my daughter's RESP this week, and made a small increase to my RRSP position in it. Overall, I have held both since 2013 (FTS) and 2015 (EMA). Since then, my annualized returns are approx. 15% for FTS, 8% for EMA (which include whole-share DRIPped dividends and remainder cash into general revenues).

EMA wins on yield, and I would argue that at this point the share price has a bit more room to rebound. The decision affecting NS Power is a short-term irritant in what is by most accounts a solidly-managed company.


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## KaeJS (Sep 28, 2010)

I know this doesn't really help you, 
But I've been buying both in the last couple weeks.

I hold FTS, EMA and AQN.

I have been buying a little more FTS than EMA just because I think if markets continue to fall, EMA will drop a bit harder.


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## AltaRed (Jun 8, 2009)

Given the current debacle of political expediency (shortsightedness) in Nova Scotia with NS Power that is hurting the EMA stock price somewhat at the moment, it demonstrates the value of owning a multi-national where the corporation can re-direct capital investment to the more higher performing parts of its organization. While I hope public opinion will cut the NS premier off at the knees, what EMA now proposes to do to minimize capital allocation to NS Power is the best thing they can do. 

From that viewpoint, it would be better to own FTS and EMA than CU. Not that it is likely to happen with a right-of-center government in AB at the moment, but can you imagine how CU would be hurt if the AB government was to asphyxiate CU's ability to provide a return to its shareholders? Owning multi-nationals seems like a far safer approach for an investor than being vulnerable to whack jobs in power.


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## dubmac (Jan 9, 2011)

looking at EMA's chart 2010 to the present is interesting - perhaps just a coincidence, but every 5 years (2013, 2018, 2022) is undergoes a 10-20% correction. weird.


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## like_to_retire (Oct 9, 2016)

dubmac said:


> looking at EMA's chart 2010 to the present is interesting - perhaps just a coincidence, but every 5 years (2013, 2018, 2022) is undergoes a 10-20% correction. weird.


Here's a total return chart of EMA vs CU vs FTS from 2010.

They actual seem to move fairly close except EMA has done the best.


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## londoncalling (Sep 17, 2011)

Thanks to all for the input and updating the thread. Likely both will have similar performance. For me it is a question of whether I want to add another stock to the portfolio but these yields are looking rather enticing. Perhaps I'll flip a coin. heads FTS, Tails EMA if it lands on edge I will buy them both.


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