Tuesday, September 9, 2008


I found this company (TSX-EMA) 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. This is a great Site.

I bought this stock first in July 2005 and since then, I have made an annual return, including dividends, of 12.5%. For this calendar year, I have made a return of 16.3%. This is a utility stock. The yield on this stock is quite high, over 4% and the dividends have added 5% to the return over the last 5 years.

The following values are all for the last 5 years to December 31, 2007, which is the last annual statement date. The negatives I find in this stock are that the revenues are increasing at only 1.8% per year and the dividends have increased at less than 1% per year. The Current Asset/Current Liability ratio is low at .97% and the Asset/Liability ratio is also low at 1.47%. However, these ratios are not out of line for a utility stock.

The better qualities of this stock are that the Earnings per Share (EPS) have increased by 9.2% and the Return on Equity (ROE) is not bad at 9.3%. The Graham price at December 2007 is not far from the closing price and the Accrual Ratio is 1.5%. The closing price has increased at the rate of 11.4% per year. This is different from my figures above, as my figures in the first paragraph are from Quicken and they are figures from purchase date to the present date.

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.

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.

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