Emera gains from low tariff risk

Article Excerpt

EMERA INC. $61 is a buy. The company (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 295.9 million; Market cap: $18.0 billion; Price-to-sales ratio: 2.5; Dividend yield: 4.8%; TSINetwork Rating: Average; www.emera.com) owns Nova Scotia Power, that province’s main electricity supplier, as well as Teco Energy, which supplies electricity and natural gas in Tampa Bay, Florida. Emera’s other interests include power plants and natural gas pipelines in the U.S. and the Caribbean. The company has little exposure to tariffs, which has helped lift the stock’s appeal and its shares by 13% since the start of 2025. Investors will also benefit from its plan to spend $20.43 billion on new projects and upgrades between 2025 and 2029. Those additional assets should lift earnings per share by 5% to 7% annually through 2027. This year, Emera will probably earn $3.25 a share, and the stock trades at a moderate 18.8 times that forecast. Rising earnings will also let Emera keep raising your dividend. The current annual…