emera

Toronto symbol EMA, generates and distributes electricity to customers in Nova Scotia and Bangor, Maine.

EMERA INC. $54 is a buy. The company (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 249.4 million; Market cap: $13.5 billion; Price-to-sales ratio: 2.4; Dividend yield: 4.7%; TSINetwork Rating: Average; www.emera.com) owns 100% of Nova Scotia Power, that province’s main electricity supplier....

These two utilities are investing heavily in new green-power projects. The initiatives will help to better attract institutional investors, who are more and more environmentally conscious. The extra cash flow from their green projects will also let them push up dividends for investors.


FORTIS INC....
Emera’s share have rebounded strongly since falling to $42 in March with the onset of the COVID-19 pandemic. We feel the stock will continue to move higher. That’s partly because Emera is replacing its coal-fired power plants with cleaner-burning natural gas, hydro power and solar....

Exchange-traded funds have traditionally offered investors three main advantages: ease of trading, low fees, and transparency. We still believe passively managed ETFs—which simply track benchmark indexes—do the best job of meeting those goals. However, actively managed ETFs, where fund managers tinker with their holdings to beat the benchmarks, are gaining popularity in Canada....
Emera and Enbridge have bounced back strongly from their March 2020 lows.


We feel both stocks will continue to rise as the pandemic eases and more countries reopen their economies. Their plans to reduce your exposure to fossil fuels will also bolster their appeal with institutional investors....
Central banks are keeping interest rates down in order to counter the negative effects of the COVID-19 pandemic. (The Supplement on page 69 offers you more info on how high deficits and low interest rates in the wake of the coronavirus will affect governments going forward.)


Utilities as a sector will benefit from the lower rates....
EMERA INC. $54 is a buy. The company (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 236.2 million; Market cap: $12.8 billion; Price-to-sales ratio: 2.2; Dividend yield: 4.5%; TSINetwork Rating: Average; www.emera.com) owns 100% of Nova Scotia Power, that province’s main electricity supplier....
The COVID-19 pandemic has spurred an investor flight to quality stocks like Emera. Shares of the utility are down just 3.4% since the start of 2020, compared to the 10.5% drop for the S&P/TSX Composite Index.


This resilience just enhances the long-term appeal of Emera, which gets most of its revenue from regulated businesses....

Introduction


Successful Investors always give dividend stocks the respect they deserve and most view them as the foundation of a sound and profitable investment portfolio.

But finding the right dividend payers can be challenging for new investors as well as experienced ones....
These two utilities get nearly all of their cash flow from regulated power contracts. Both use that solid revenue to build up their operations, including cutting their reliance on fossil fuel projects. Those improvements should continue to fuel your long-term dividend increases.


EMERA INC....