Topic: How To Invest

Dividend Advisor Hotline – Friday, October 6, 2017

Article Excerpt

EMERA INC., $48.01, Toronto symbol EMA, owns 100% of Nova Scotia Power—the province’s main electricity supplier. It also owns power utilities in the U.S. and the Caribbean. Emera will now raise its quarterly dividend by 8.1%. Starting with the November 2017 payment, investors will receive $0.565 a share, up from $0.5225. The new annual rate of $2.26 yields a high 4.7%. The dividend hike is thanks to additional cash flow from the company’s July 2016 purchase of Teco Energy. That firm supplies electricity and natural gas to customers in Tampa Bay, Florida. It also distributes gas in New Mexico. In the second quarter of 2017, Teco accounted for 66% of Emera’s earnings (excluding losses at its energy trading business). With the addition of Teco, the company still plans to increase its dividend by 8% each year through 2020. Emera’s dividend has grown an average of 10.1% annually over the last five years. Its TSI Dividend Sustainability Rating is Highest. OUR RECOMMENDATION: Emera is a buy. Emera Inc…