Emera Inc. (TSX:EMA) is a pacesetter in Canada’s energy industry. The company believes that change is the new normal in the industry. In the same light, EMA is suited to investors wishing to change some stocks in their portfolios for better financial gains.
The geographically diverse energy and services company is focused on finding new and innovative ways to ensure a cleaner environment for communities and their dwellers. For investors, the paramount promise is a financially rewarding future.
One of Canada’s top employers
The first thing you look at when evaluating an investment prospect is the company’s credibility and public acceptance above all else. Emera Inc. is definitely a certified winner in the pre-qualifying stage. This Halifax, Nova Scotia-based utility company is a multi-awarded employer.
Emera already earned top honours and distinction this year. The company has been selected as one of Canada’s Top 100 Employers (2019), Atlantic Canada’s Top Employers (2019) and Nova Scotia’s Top Employers (2019). The recognition alone is practically solid endorsements for Emera as a reliable investment option.
Decades-long solid track record
A company that takes good care of its employees is certainly fixated on keeping the shareholders happy. Currently, Emera’s treasure chest of assets is $32 billion after ending 2018 with revenues of more than $6.5 billion.
Aside from Canada, their presence, as well as investments, is in the United States and four Caribbean countries. Notably, the company had strong earnings growth counting nearly three decades back, which is precisely why dividend payouts keep increasing since 1992.
For the last decade, stockholders were receiving 5.1% dividend which is not far off from the dividend aristocrats. This only indicates that the dividend payouts are adequately covered by earnings. Analysts are now looking at a dividend yield of 5.3% in the near future assuming the stock price remains flat.
Investing for the future
If your entry point is EMA’s last price of $47.18, it’s important to note that it is 15.04% higher from the price a year ago. The increase is not as spectacular by any measure. However, the proof that this is a quality stock is in the pudding. And the pudding is none other than the higher dividend rate. From a dividend standpoint and passive income patrons, Emera Inc. is an excellent choice.
Emera might be considered platinum compared to industry peers. The company’s aggressive push for creative energy is pioneering and a cut above the rest. But because it is still a utility stock, EMA’s movement and behaviour would be typical of utility stocks.
Certainly, the stock would generate higher income to bolster your TFSA. But the holding period would be longer. In a couple of years or more, your patience will be rewarded with rising dividends.
Your decision to buy shares of Emera Inc, or a utility stock for that matter would depend on your time horizon.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned.