Topic: How To Invest

Dividend Advisor Hotline – Friday, February 16, 2018

Article Excerpt

EMERA INC., $41.37, Toronto symbol EMA, 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. In July 2016, Emera purchased Teco Energy for $13.9 billion. That firm supplies electricity and natural gas to 1.05 million customers in Tampa Bay, Florida, as well as natural gas to 510,000 customers in New Mexico. Thanks to the additional cash flow from Teco, Emera raised its quarterly dividend by 8.1%, starting with the November 2017 payment. Investors now receive $0.565 a share, up from $0.5225. The annual rate of $2.26 yields a high 5.5%. The company plans to increase its dividend rate by 8% each year through 2020. That target seems reasonable considering Emera’s regulated operations currently supply 90% of its earnings. The company aims to pay out 70% to 75% of its earnings as dividends. Emera’s shares fell 9% this week after the company reported a loss…