Emera Inc. (TSX:EMA)(NYSE:EMA) is a Halifax-based utility. Shares have climbed 2.5% month-over-month as of close on October 30. Utilities have historically performed well during periods of economic turbulence, and this October has been no different.
Shares of Emera are still down 12% in 2018 so far, so the utility has some ground to make up. Utilities have been battered by rising bond yields. Since the financial crisis, historically low interest rates have boosted the position of utility stocks as some of the top income vehicles available for investors.
With bond yields rising many are starting to turn back to alternatives. Renewed market turbulence has the potential to drive these same investors back into utilities.
Emera is expected to release its third-quarter results in early November. For the first six months of 2018 Emera has posted adjusted net income of $313 million compared to $269 million in the prior year. Operating cash flow rose 9% year-over-year to $767 million.
Emera is especially enticing for investors on the hunt for income during this correction. The board of directors last announced an annual dividend of $2.35 per share which represents an attractive 5.5% yield.
There are hopes that markets can rally in November, but economic headwinds are still present, and this pullback could extend into the second half of autumn.
If this correction continues, Emera should be one of your top targets as we head into November.
