Hydro One Ltd. (TSX:H) stock rose 1.07% on September 13.
Shares have climbed 3.6% over the past month as the stock has rebounded from the departure of its CEO and board members. This move was forced by the new Doug Ford-led PC government which had vowed to remove Hydro One executives during the Ontario provincial election campaign.
The company released its second-quarter results on August 30. It may have been bittersweet for the departing executive team that appeared to leave a strong structure for those pegged to replace them.
Earnings per share rose 70% to $0.34 and adjusted earnings per share climbed 65% to $0.33. Hydro One’s earnings were powered by favourable weather conditions and the Ontario Energy Board’s (OEB) decision on transmission rates.
The company is still waiting on regulatory approval for its acquisition of the U.S.-based Avista Corporation. This is expected to conclude at some point this year. The completed transaction will bring over 700,000 U.S. consumers under Hydro One’s umbrella.
An aggressive acquisition strategy was part of the departing team’s mantra and it will be interesting to see what changes are made with new management.
Hydro One also declared a quarterly dividend of $0.23 per share representing a 4.5% dividend yield. However, its new leadership shakes out Hydro One boasts a wide economic moat and should continue to post high dividends and consistent dividend-growth into the next decade and beyond.
Priced under $20, the stock is still an attractive buy-and-hold today.
