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  5. EMA: As a sector goes, I am so confused by the Canadian "utilities" over the last 5 years. [Emera Incorporated]
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Q: As a sector goes, I am so confused by the Canadian "utilities" over the last 5 years.
Why is it so heterogenous in performance, FTS, CU, EMA, ENB,H, TRP ? Why did ENB AND TRP seem to rebound in 2024?
Asked by Ernest on January 24, 2025
5i Research Answer:

There was a period of time, not so long ago, that investors hated ENB. They were worried about high debt, the Line 5 pipeline, and the sustainability of the dividend. We thought the concern was mostly unfounded, and as interest rates started to move lower and the company raised its dividend (December) investors relaxed a bit and started buying again. TRP was similar, but its problems were huge cost overruns on a pipeline. This really hurt the stock. But with the split of the company and the issues gone investors again started buying. Otherwise, the similar performance is pretty common. Cash flow is very steady and predictable, and the group tends to be very closely tied to interest rates moves overall. Except for 'problem' companies such as AQN the correlation of the sector has always been fairly high.