New assets will lift Emera’s dividend

EMERA INC. $54 is a buy. The company (Toronto symbol EMA; Income Growth Portfolio, Utilities sector; Shares outstanding: 256.5 million; Market cap: $13.9 billion; Dividend yield: 5.1%; Dividend Sustainability Rating: Highest; www.emera.com) owns 100% of Nova Scotia Power, that province’s main electricity supplier. It also owns Tampa Electric, as… Read More

These four can also handle higher rates

Rising interest rates have dampened investor enthusiasm for high-yielding utility stocks. That’s because higher rates add to a utility’s interest costs and, at the same time, they increase the appeal of competing bonds by spurring their yields.
However, these four utilities get most of their revenue… Read More

Emera can handle higher interest rates

Rising interest rates are generally bad news for utilities like Emera, as they increase the appeal of bonds for investors who might otherwise look to utilities. At the same time, higher interest rates increase borrowing costs for utilities. However, power regulators will likely let providers… Read More