emera

Emera is both a high-yielding utility and a growth stock aiming to raise its dividend with the help of new projects: our recommendation.

EMERA INC. $42 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 144.8 million; Market cap: $6.1 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.8%; TSINetwork Rating: Average; www.emera.com) owns 100% of Nova Scotia Power, that province’s main electricity supplier. This business supplies 45% of Emera’s revenue and a third of its earnings. In the past few years, the company has steadily expanded into other regions, mainly through acquisitions. It now owns or invests in several power plants and natural gas pipelines in the U.S. and the Caribbean. Thanks to these new operations, Emera’s revenue rose 85.0%, from $1.6 billion in 2010 to $3.0 billion in 2014. Erratic earnings history...

When you look to buy Canadian dividend stocks, dividend yield is an important consideration but in some cases the yield can be misleading.

ALGONQUIN POWER & UTILITIES CORP. $9.58 (Toronto symbol AQN; Shares outstanding: 238.9 million; Market cap: $2.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.9%; www.algonquinpower.com) has nearly tripled in size over the past three years through acquisitions. It plans to expand further with more purchases.

The company’s regulated utility businesses now provide water, electricity and natural gas to over 489,000 customers, up sharply from 120,000 three years ago. In addition, its hydroelectric, thermal energy, solar and wind facilities generate 1,150 megawatts, up from 460.

Emera (Toronto symbol EMA), a recommendation of The Successful Investor, our conservative growth advisory, owns 21.0% of Algonquin.

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Long-term contracts support these high-yielding power firms that we like as two of the fastest growing stocks for conservative investors.

ALGONQUIN POWER & UTILITIES CORP. $9.58 (Toronto symbol AQN; Shares outstanding: 238.9 million; Market cap: $2.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.9%; www.algonquinpower.com) has nearly tripled in size over the past three years through acquisitions. It plans to expand further with more purchases. The company’s regulated utility businesses now provide water, electricity and natural gas to over 489,000 customers, up sharply from 120,000 three years ago. In addition, its hydroelectric, thermal energy, solar and wind facilities generate 1,150 megawatts, up from 460. Emera (Toronto symbol EMA), a recommendation of The Successful Investor, our conservative growth advisory, owns 21.0% of Algonquin....

CANADIAN TIRE CORP., $133.55, Toronto symbol CTC.A, recently sold 20% of its financial services division to Bank of Nova Scotia (Toronto symbol BNS) for $500 million. That’s the main reason why the company’s earnings fell 3.0% in the quarter ended April 4, 2015, to $68.5 million from $70.6 million a year earlier. Per-share profits were unchanged at $0.88 on fewer shares outstanding, but that beat the consensus estimate of $0.87. Overall sales fell 2.3%, to $2.5 billion from $2.6 billion, mainly because lower gasoline prices hurt revenue at Canadian Tire’s gas stations. But if you exclude fuel-station revenue, the company’s overall sales gained 2.2%....

PLEASE NOTE: Our next Hotline will go out on Friday, April 10, 2015. RIOCAN REAL ESTATE INVESTMENT TRUST, $29.47, Toronto symbol REI.UN, has agreed to swap some properties with U.S.-based Kimco Realty (New York symbol KIM). Under the deal, RioCan will acquire Kimco’s 50% interests in a mall in Calgary and another in Mississauga for a total of $87.5 million. That will give the trust 100% of both malls, making it easier for it to expand or redevelop them....

EMERA INC. $43 (www.emera.com) earned $2.23 a share in 2014, up 13.8% from $1.96 in 2013. Revenue jumped 33.3%, to $3.0 billion from $2.2 billion. These gains are largely due to the company’s November 2013 purchase of three gas-fired power plants in New England for $541 million U.S....

EMERA INC. $43 (www.emera.com) earned $2.23 a share in 2014, up 13.8% from $1.96 in 2013. Revenue jumped 33.3%, to $3.0 billion from $2.2 billion. These gains are largely due to the company’s November 2013 purchase of three gas-fired power plants in New England for $541 million U.S. Higher earnings from its energy-trading business also contributed to the increase. In addition, Emera raised its quarterly dividend by 3.2% with the May 2015 payment, to $0.40 a share from $0.3875. The new annual rate of $1.60 yields 3.7%. Best Buy. CANADIAN UTILITIES LTD. $40 (www.canadianutilities.com) has raised its quarterly dividend by 10.3%, to $0.295 a share from $0.2675. The new annual rate of $1.18 yields 3.0%. Buy. ATCO LTD. $48 (www.atco.com) is the parent company of Canadian Utilities (see above). It recently raised its dividend by 15.1%. The new annual rate of $0.99 yields 2.1%. Best Buy....