# Fortis verus Emera



## newfoundlander61 (Feb 6, 2011)

For the utilities sector what are opinions on either of these stocks as a long term hold. Interest rates will effect them but with Emera being close to its 52 week low is now a good time to pick up utility stocks to hang on to for a few years.


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## Eder (Feb 16, 2011)

Both of these belong in most portfolio's. I would argue to add some Canadian Utilities as well. Why wait to buy them at higher prices in 5 years?


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## jargey3000 (Jan 25, 2011)

Fortis was my first-ever stock buy (well, i guess it was actually "Nfld. Light & Power" back in the day, early 80's maybe?)
We've had a great run ever since. I sold a big chunk of it @$47 awhile back. Still own a bunch of it.
I'm wondering if its HAD its run though ....


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## like_to_retire (Oct 9, 2016)

jargey3000 said:


> Fortis was my first-ever stock buy (well, i guess it was actually "Nfld. Light & Power" back in the day, early 80's maybe?)
> We've had a great run ever since. I sold a big chunk of it @$47 awhile back. Still own a bunch of it.
> I'm wondering if its HAD its run though ....


There is no run - it's a regulated utility for electricity and gas. It just goes and goes and goes, tempered by interest rates.

ltr


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## jargey3000 (Jan 25, 2011)

yeah, you're right... ive seen highs & lows over the years..
its like the everyready bunny


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## like_to_retire (Oct 9, 2016)

jargey3000 said:


> yeah, you're right... ive seen highs & lows over the years..
> its like the everyready bunny


In fact, FTS is the king of utilities. It's the stock you never sell.

Compared to EMA and CU over 20 years, it's up about 1000% compared to those two at 500%.

I'm gonna go out on a limb here and predict that after 44 consecutive annual dividend increases, that FTS will raise it's dividend in the next couple weeks.

View attachment 19046


ltr


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## agent99 (Sep 11, 2013)

newfoundlander61 said:


> For the utilities sector what are opinions on either of these stocks as a long term hold. Interest rates will effect them but with Emera being close to its 52 week low is now a good time to pick up utility stocks to hang on to for a few years.


Utility stocks are no doubt down because of expected higher interest rates. Their dividends compete with fixed income products. CU & Emera dividend yields are quite a bit higher than Fortis and maybe will weather higher interest rates better? We own all three, but Fortis holding is smallest. Also own NGG:US - Very large International utility. Good yield but quite a bit of political risk in Britain.


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## robfordlives (Sep 18, 2014)

They have a new CEO as of May and he has stated they need to get their balance sheet in order. As such dividend growth guidance has been cut and factor in the higher interest rate environment we are moving into and voila the thing is getting hammered. I wonder about their US acquisition and how that will pan out. They are needing to spend enormous amounts of money on some solar thing that they claim will be immensely profitable. Same with CU...they wandered outside their expertise area and they are getting their butts handed to them with their Mexican escapades. These companies are going for growth with immense debt levels when all we want is the boring old cash cow utilities that stick to what they know


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## doctrine (Sep 30, 2011)

Fortis is the far safer pick, bigger company, better proven record. Fortis never overpromised on the dividend, and their payout ratio is very manageable. And their US acquisition, ITC, is a bigger prize and long since closed and seems to be working very well.


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## newfoundlander61 (Feb 6, 2011)

Excellent conservation and much appreciated.


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