Canadian utilities stocks have suffered alongside telecom and real estate as rising interest rates have put the pressure on these income generators that have been favoured since the financial crisis. Let’s look at two of the top Canadian utility companies.
Fortis Inc. (TSX:FTS)(NYSE:FTS) is an electric and gas utility holding company based in St. John’s. Shares of Fortis were down 1.3% in early afternoon trading on February 20. The stock has dropped 9.9% in 2018 thus far. Fortis released its 2017 fourth quarter and full-year results on February 15.
Adjusted net earnings increased 10% to $1.053 billion or $2.53 per common share in 2017. Cash flow from operating activities surged 46% to $2.8 billion and the company reaffirmed its five-year capital expenditure program of $14.5 billion through 2022. It also aims to hike its dividend by 6% annually. The company delivered quarterly dividend of $0.43 per share representing a 4.1% dividend yield.
Hydro One Ltd. (TSX:H) is a Toronto-based utility company that services the province of Ontario. Shares were down 0.05% in early afternoon trading on February 20. The stock has dropped 7% in 2018 so far. Hydro One released its Q4 and full-year results for 2017 on February 13.
Adjusted net income climbed to $170 million in the fourth quarter compared to $128 million in the prior year. The Federal Energy Regulatory Commission (FERC) also approved the merger of Hydro One and Avista Corp., but other approvals are still pending which pushes back the merger until mid-2018 at the earliest. Hydro One also announced a quarterly dividend of $0.22 per share representing a 4.2% dividend yield.
