EMERA INC. $47

EMERA INC. $47 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 145.3 million; Market cap: $6.8 billion; Price-to-sales ratio: 2.5; Dividend yield: 4.0%; TSINetwork Rating: Average; www.emera.com) has reached a deal to increase its ownership of Emera (Caribbean) Inc. From 95.6% to 100.0%. This publicly traded subsidiary holds Emera’s interests in power utilities in Barbados, Dominica and St. Lucia. Emera will cut administrative costs by taking full control. The company will pay roughly $16.5 million in cash and Emera stock for the additional stake. To put that in context, Emera earned $330.0 million, or $2.26 a share, in 2015. Emera is our top Income buy for 2016.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.