Fortis is even more appealing now

Article Excerpt

We’ve long recommended electrical power utility Fortis as a pick for steady growth and reliable income. The stock is even more attractive right now in light of the escalating trade war with the U.S. While new tariffs on steel and aluminum could increase the costs of Fortis’s projects in both Canada and the U.S., its utilities sell little of their power outside of their local markets. What’s more, those rate-regulated businesses give the company plenty of reliable cash flows for dividends. FORTIS INC. $64 is a buy. The company (Toronto symbol FTS; Conservative & Income Portfolios, Utilities sector; Shares outstanding: 499.3 million; Market cap: $32.0 billion; Price-to-sales ratio: 2.8; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.fortisinc.com) is the main supplier of electrical power in Newfoundland and PEI. It also owns electrical and gas utilities in other parts of Canada, 10 U.S. states and three Caribbean countries (Belize, Cayman Islands, and Turks & Caicos Islands). Rate-regulated operations supply 99% of its revenue. In 1987, Fortis reorganized…