‘Green shift’ will fuel your long-term gains

Article Excerpt

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. $55 is a buy. The company (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 236.2 million; Market cap: $13.0 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. It also holds interests in several power plants and natural gas pipelines in the U.S. and the Caribbean. Its U.S. operations include Emera Maine, which distributes electricity to 159,000 customers in the northern and eastern parts of the state. In March 2020, Emera completed the sale of Emera Maine to ENMAX Corp., the utility company owned by the City of Calgary. Emera received $959 million U.S. for that business. ENMAX will also assume $500 million U.S. worth of debt, bringing the…

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