Utility stocks have been highly dependable since the beginning of the pandemic. Indeed, these equities have been a very solid alternative to fixed income vehicles in a low interest rate environment. Today, I want to look at one of my favourite utilities stocks on the TSX. This one is worth holding onto for the long haul.
Emera (TSX:EMA) is a Halifax-based company that is engaged in the generation, transmission, and distribution of electricity to its customer base. Shares of this top utility stock have dropped 6.2% in 2022 as of close on February 22. The stock is still up 17% in the year-over-year period.
This company unveiled its fourth quarter and full year 2021 earnings on February 14. In Q4 2021, adjusted earnings per share came in at $0.64 – down from $0.75 in the previous year. Meanwhile, adjusted EPS for the full year rose $0.13 year-over-year to $2.81. Better yet, it forwarded its capital plan with $2.4 billion in rate base investments for 2021. This should work to bolster Emera’s rate base through this decade.
Shares of this utility stock last had a price-to-earnings ratio of 29. That puts Emera in favourable value territory compared to its industry peers. Emera last paid out a quarterly dividend of $0.662 per share. This represents a solid 4.5% yield. I’m looking to snatch up this utility stock for the long term in late February.
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