Shift to green energy will benefit investors

Article Excerpt

Emera’s embrace to renewable sources of power puts it in a strong position to comply with increasingly stringent environmental regulations. That should lift its appeal with big institutional investors, who are targeting firms with high environmental, social, and governance (ESG) scores. Moreover, the company gets 95% of its earnings from regulated operations. That gives it dependable cash flow for regular dividend increases. EMERA INC. $58 is a buy. The company (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 256.5 million; Market cap: $14.9 billion; Price-to-sales ratio: 2.8; Dividend yield: 4.6%; TSINetwork Rating: Average; www.emera.com) owns 100% of Nova Scotia Power, that province’s main electricity supplier. It also owns 100% of Teco Energy, which it acquired in July 2016 for $13.9 billion. That firm supplies electricity and natural gas to 1.05 million customers in Tampa Bay, Florida. Other interests include power plants and gas pipelines in the U.S. and the Caribbean. As a result of the Teco acquisition, Emera’s revenue jumped 133.9%, from $2.79 billion…