February 21, 2018

Utilities on Our Radar

By nature, steady utility stocks can provide a rock-solid base for any portfolio. They sure bode well with our long-term relatively conservative approach.

Usually, the problem can be to acquire them at attractive prices as they rarely fluctuate a lot and hence, get on sale. Luckily, things may be different lately as circumstances like changing interest rates and new US tax regulations are hammering down many utility stocks.

Most people may think it’s a bad thing as they won’t like seeing their stocks go down. But like us, savvy investors just see it as a unique opportunity to buy additional shares at low prices.

Many utility giants with a proven long-term track record will easily adjust and do very well in the long haul after these short-term setbacks.

Although we won’t stop using them in the near future, oil and gas alternatives are becoming less popular and won’t last forever. That’s why we now prefer corporations that focus more on electricity and renewable energies.

Here are some utility stocks on top of our Watch List right now:

Emera (EMA)

Emera (EMA) is probably our favourite utility stock of all time. Unfortunately, we have yet to have a chance to buy it at interesting price levels as it almost never falters. We have a feeling it will finally find its way to our DIY Portfolio pretty soon.   

Based in the Maritimes, EMA main activities focus on production and distribution of electricity in eastern Canada and US. You will note its presence in Florida as well as in the Caribbean.

Emera is well positioned with its hurricane-proof infrastructure and green-energy approach.

Fortis (FTS)

Fortis (FTS) is another utility company with a solid base across Canada. This electric and gas distribution titan is also present in the US and the Caribbean.

Expansion, especially in the United States, seem to be in the works for this steady income-producing holding.

We already owned FTS shares but will gladly purchase more at these price levels.

Canadian Utilities (CU)

As we mentioned in our latest Portfolio Update, we previously acquired extra shares of Canadian Utilities (CU) earlier in 2018.
Compared to Emera, Canadian Utilities activities may be less primarily related to electricity, but it should still provide sturdy long-term performance for our DIY Portfolio.

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