Emera 2

As I said yesterday, I found this company through Mike Higg’s site at http://www.dividendgrowth.org/Report.htm. Mike’s site has a spreadsheet showing Dividend Paying Canadian Growth stocks. He recommends that people investigate the stocks on his list for possible purchase when a stock shows that its yield is high compared to the stock’s historical yield. According to his spreadsheet, this stock is no bargain at a current yield of 4.34%. According to my spreadsheet, it is at the 5 year average.

This stock has just raised their annual dividend by 5.5%, which is a health raise considering past raises have usually been at just over 1%. This stock has a payout average of 76% over the past 5 years, so most of the profit made on this stock is dividend income. Dividend income has raised the returns on this stock by about 4% and this is high. The P/E at 16.2% is slightly lower than the 5 year average of 17.2%, which is good. However, this P/E ratio it is not significantly lower than the 5 year average.

Although there are a few Buy calls on this stock, most calls are for a Hold. There has been, of course, a pull back on this stock over the last few days because of the current volatility and the current bear market. It might become a good buy if the stock pulls back some more.

Emera is a holding company in the energy sector. Its principal operating subsidiaries are Nova Scotia Power Inc. and Bangor Hydro-Electric Company. Nova Scotia Power is Nova Scotia's integrated electric utility. Bangor Hydro is an electric distribution utility in Central Maine. Emera has a few smaller operations and investments, such as a minority stake in M & NP pipeline. Its web site is www.emera.com/. See my spreadsheet on this company at www.spbrunner.com/stocks/ema.htm. I have uploaded by spreadsheet with figures from the June 2008 quarterly report.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.