Q: Hello Team,
Which of these two companies would you expect the best return, capital appreciation plus dividends over the next 2 to 3 years, and why?
Thanks,
Barrt
Which of these two companies would you expect the best return, capital appreciation plus dividends over the next 2 to 3 years, and why?
Thanks,
Barrt
5i Research Answer:
Such predictions are of course difficult, and all we can really go on is growth estimates and valuations. Both should have the same macro influences, more or less. EMA is 18X earnings, 4.90% yield, with about 3% growth expected into 2026 after a good bounce this year. FTS is 19X, 3.81% and about 6% growth expected. FTS is almost 2X as bit, but EMA has outperformed it a bit over one year and YTD. We could go either way here. FTS may be 'safer' and it has a stellar dividend growth record. EMA may outperform though with a bit better growth and a higher yield. For conservative investors we would side with FTS, otherwise EMA.