When investors think about long-term investing, they want a dividend stock that won’t keep them up at night. Something steady, reliable, and quietly compounding wealth in the background. For Canadian dividend investors, Emera (TSX:EMA) fits the bill. It’s not flashy, and it’s not going to double in a year. But if you’re looking for a stock to hold for the next 20 years, this one deserves a spot on your radar.
Source: Getty Images
What happened
Over the past year, Emera stock climbed over 30% at writing. That’s impressive in a tough environment for utilities, where high interest rates have punished anything tied to debt. Emera pushed through the noise, thanks to strong results from its U.S. operations, especially in Florida. Tampa Electric was a standout, with solid customer growth, better weather, and new base rates all driving earnings higher.
In the second quarter of 2025, adjusted earnings per share (EPS) jumped 49% year over year, landing at $0.79. That brought year-to-date adjusted EPS to $2.07, up from $1.28 the year before. Reported net income also soared, reaching $718 million in the first half, nearly double the $336 million from the same period last year. Part of that came from favourable currency moves and strong natural gas trading at Emera Energy Services. But the real story is how the dividend stock’s strategy is paying off across the board.
More to come
Emera invests heavily in its infrastructure. In the first half of this year alone, it deployed over $1.7 billion in capital, aiming to reach more than $3.4 billion by year-end. That’s not just spending for the sake of growth, but about strengthening the grid, storm-proofing critical infrastructure, and supporting the communities it serves.
The dividend stock guides for 5% to 7% annual average adjusted EPS growth through 2027, and expects 7% to 8% rate base growth through 2029. That kind of growth should support dividend increases over time, even with the payout ratio currently hovering around 98%. The current yield sits just above 4.3% at writing, offering investors solid income in addition to capital appreciation potential.
Considerations
Of course, the debt load is worth watching. Emera carries more than $20 billion in total debt and a debt-to-equity ratio north of 150%. That’s typical for utilities, but still something to monitor, especially if interest rates stay elevated longer than expected. Still, the dividend stock generates over $2.2 billion in operating cash flow and has shown it can manage financing effectively.
One recent wildcard is the planned sale of its New Mexico Gas Company. The dividend stock booked a $72 million impairment in Q2 tied to the pending sale, but the move could free up capital and simplify operations. Investors should also keep an eye on regulatory developments in Nova Scotia, where cybersecurity costs and depreciation impacted earnings. Even so, the Canadian side of the business still posted higher year-to-date income, thanks in part to clean energy tax credits and increased sales volumes.
Foolish takeaway
There’s no denying that utilities can be boring. But boring can be beautiful when you’re thinking in decades, not quarters. Emera doesn’t need to reinvent itself to deliver results. It just needs to keep doing what it’s doing: investing in essential infrastructure, maintaining stable operations, and passing along a growing dividend. One that can pay out $304 each year from a $7,000 investment.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| EMA | $66.61 | 105 | $2.90 | $304.50 | Quarterly | $6,994.05 |
If your goal is dependable income and long-term growth without the daily drama of volatile stocks, Emera is the kind of company you can trust to show up quarter after quarter, year after year. It’s not about chasing the next hot trend. It’s about securing your financial future, one dividend cheque at a time.
