The S&P/TSX Capped Utilities Index was down nearly a full percentage point in early afternoon trading on Tuesday, July 18. Today, I want to target three top Canadian utility stocks that have delivered stable returns in recent years. These equities are also dependable dividend stocks. Let’s dive in.
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This utility stock is on track to become another Dividend King
Fortis (TSX: FTS) is a St. John’s-based utility holding company. Shares of this utility stock have dipped 1.5% month over month at the time of this writing. The stock is up marginally so far in 2023.
This company released its first-quarter (Q1) fiscal 2023 earnings on May 3. Fortis reported adjusted net earnings per share (EPS) of $0.91 — up from $0.78 in Q1 2022. Meanwhile, it saw capital expenditures of $1.0 billion, which kept it on track to reach $4.3 billion for the full year. That five-year capital plan aims to dramatically grow Fortis’s rate base through to 2027. The stock has delivered 49 consecutive years of dividend growth, putting it one year away from a dividend crown.
Shares of this utility stock currently possess a favourable price-to-earnings (P/E) ratio of 18. Fortis offers a quarterly dividend of $0.565 per share. That represents a solid 4% yield.
Why Emera is a rock-solid target in July
Emera (TSX: EMA) is a Halifax-based energy and services company that is engaged in the generation, transmission, and distribution of electricity to various customers. This utility stock has dipped 1.4% over the past month. Its shares have increased 1.4% in the year-to-date period.
In Q1 2023, the company reported adjusted net income of $268 million, or $0.99 per common share — up from $242 million, or $0.92 per common share, in Q1 2022. Emera management was pleased with the strong start to the 2023 fiscal year. The company is also moving forward with a multi-billion-dollar capital plan that is focused on bolstering its bottom line and supporting solid dividend growth through the years.
This utility stock last had an attractive P/E ratio of 12. Emera has delivered 16 straight years of dividend growth, making it a top Canadian Dividend Aristocrat. It currently offers a quarterly distribution of $0.69, which represents a strong 5.1% yield.
One more dependable utility stock I’d snatch up right now
Hydro One (TSX: H) is the third and final utility stock I’d look to snag in the second half of July 2023. This Toronto-based electricity transmission and distribution company made its debut on the TSX Index back in 2015. Shares of Hydro One have jumped 2.4% month over month at the time of this writing. The stock is up 1.3% so far in 2023.
This company unveiled its Q1 2023 earnings on May 5. Hydro One delivered revenues of $2.07 billion — up from $2.04 billion in the prior year. Meanwhile, higher operation, maintenance, and administration costs led to a dip in earnings. Regardless, Hydro One is a profit machine that investors can trust for the long term.
Shares of this utility stock possess a solid P/E ratio of 22. It offers a quarterly dividend of $0.296 per share, representing a 3.1% yield.
