Wednesday, August 19, 2009

Fortis Inc

I am reviewing this stock (TSX-FTS) today as I have not reviewed it since July 2008 and the 2008 year end annual statement came in later. I bought this stock in November 1987 and make another purchase in November 1995 and another purchase in March 1998. I sold some stock in April 2005. I have made a return of 13% per year, including dividends. All in all, this has been a great stock for me.

If you look at the growth figures for this stock, they are all good. The dividend yield is good and generally runs around 3%. The average increase in dividends over the last 10 years is 8% and the last 5 years is 14%. They pay out a reasonable proportion of the cash flow, around 25%.

When looking at the liquidity ratios, they are lower than 1.50, where I would like to see them. However, the Asset/Liability Ratio is at least over 1.00. The liquidity ratios are always low and the average for the last 5 and 10 years are 0.64 and 0.57. The Return on Equity has is reasonable with the 5 year running average at 8.4% and the 2008 year end at 7.2%.

I currently have every intention of holding on to this stock. It is doing what I expect it to do. It pays a reasonable dividend and the stock continues to increase. If you were into dividend paying stock, this would be a great one.

Fortis is a diversified, international distribution utility holding company. This company provides gas and electricity to customers across Canada, through regulated holdings, which include a natural gas utility in British Columbia, and electric utilities in 5 provinces in Canada, and 3 Caribbean countries. It owns non-regulated hydroelectric generation assets across Canada and in Belize and upper New York State. It also owns and operates hotels in eight Canadian provinces as well as commercial real estate in Atlantic Canada. Its web site is See my spreadsheet at

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 for a list of the stocks for which I have put up spreadsheets.

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