-
Fortis Inc. (FTS)
-
Emera Incorporated (EMA)
-
Algonquin Power & Utilities Corp. (AQN)
-
Hydro One Limited (H)
Q: Hello Peter,
I am thinking of increasing my weight to 5 percent for Fortis. I understand that the company has been stable for long time with increasing dividends, but is it possible that it could run into headwinds as Algonquin did? I am wondering if i should stick to 3 percent and put the other 2 percent in hydro one and Emera.. Thanks very much
I am thinking of increasing my weight to 5 percent for Fortis. I understand that the company has been stable for long time with increasing dividends, but is it possible that it could run into headwinds as Algonquin did? I am wondering if i should stick to 3 percent and put the other 2 percent in hydro one and Emera.. Thanks very much
5i Research Answer:
Companies can always run into trouble, but we think its history proves management is better than AQN, and with 50+ years of dividend increases we have a high degree of confidence that FTS is not going to mess things up. We would be fine buying, but at the same time we do believe in diversification. We can't comment on personal position sizes but we would be comfortable with a sizeable weighting of FTS and also would be fine spreading $$ into three sector companies as noted.