FORTIS INC. $31 (Toronto symbol FTS; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 211.7 million; Market cap: $6.6 billion; Price-to-sales ratio: 1.8; Dividend yield 4.0%; TSINetwork Rating: Above Average; www.fortis.ca) is the main electricity supplier in Newfoundland and Prince Edward Island. It also distributes natural gas in B.C. and operates power plants in other parts of Canada, the U.S. and the Caribbean.
On June 27, 2013, Fortis paid $1.5 billion U.S. for CH Energy, which distributes gas and electricity in New York State.
Without costs related to this acquisition and other unusual items, Fortis earned $61 million, or $0.32 a share, in the second quarter of 2013. That’s down 10.3% from $68 million, or $0.36, a year earlier. The decline is mainly due to lower rates and volumes at its B.C. gas utility. Revenue fell 0.3%, to $790 million from $792 million.
The stock trades at a somewhat high 17.9 times the $1.73 a share that Fortis should earn in 2013. Moreover, the company made several concessions to win regulatory approval for the CH takeover, including freezing power rates until June 2015. This will hurt CH’s contribution to Fortis’s earnings. The $1.24 dividend yields 4.0%.
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Privacy Policy and Terms of Use
The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.
This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.
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We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
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We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
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Does TSI Network Use the Information It Receives?
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Changes to this Policy
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