Focus on their dividends, not interest rates

Article Excerpt

Rising interest rates have increased the attractiveness of bonds and hurt interest in high-yielding dividend stocks like these four utilities. However, steady cash flows from their high-quality operations will continue to let them keep increasing their payouts. EMERA INC. $43 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 228.3 million; Market cap: $9.8 billion; Price-to-sales ratio: 1.6; Dividend yield: 5.3%; TSINetwork Rating: Average; www. emera.com) owns 100% of Nova Scotia Power, that province’s main electricity supplier. This business supplies 20% of Emera’s earnings. In the past few years, Emera has invested in several power plants and gas pipelines in the U.S. and the Caribbean. Those include its July 2016 purchase of Teco Energy for $13.9 billion. That firm supplies electricity and natural gas to 1.05 million customers in Tampa Bay, Florida. Another of its businesses distributes gas to 510,000 customers in New Mexico. Emera also expects to complete two major projects in 2018. They include the $600 million Labrador Island Link. It…