Emera Inc.

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price is reasonable and around the median. This is a relatively good price to buy this stock. There is a problem with Long Term Debt where the Debt/Market Cap ratio is 1.55. This is mostly due to the recent acquisition. Analysts seem to see the TECO Energy acquisition in a positive light. See my spreadsheet on Emera Inc.

I own this stock of Emera Inc.(TSX-EMA, OTC-EMRAF). I found this company in Mike Higg's site. Mike's site has a spreadsheet showing Dividend Paying Canadian Growth stocks. In 2005, I wanted to buy something for my Locked in RRSP. I think that this was an appropriate stock and has good value. I was using up excess cash in my account.

Dividends are good and the dividend increases are moderate. The current dividend is 4.62% based on dividends of $2.09 and a stock price of 45.27. Dividend growth over the past 5 and 10 years is at 8.7% and 8.4% per year. This company has set a target of 8% dividend increases to 2020.

The Dividend Payout Ratio for 2016 was 151%, but the 5 year DPR is 77%. It has a target payout ratio of 70-75%. The DPR for CFPS is 46% in 2016 and the 5 year ratio is 35.6%. I have dividend information going back to 1993 or some 21 years. It is only in 2003 and 2006 that dividends received in one year were not higher than the previous year.

If you bought the stock today and they increased the dividend at 8% per year then in 5, 10 or 15 years times you should be making 6.78%, 9.97% or 14.65% on the current stock price of $45.27. If you had bought this stock 5, 10 or 15 years ago you would be making 6.17%, 10.31% or 12.48% on your original purchase price if you paid a median price for the stock.

Outstanding shares have increased by 11.3% and 6.6% per year over the past 5 and 10 years. In order to gage the growth of this company you need to look at pre share values. It can make a difference. For example, Revenue has increase by 15.7% and 13.9% per year over the past 5 and 10 years. Revenue per Share has increase by 3.9% and 6.8% per year over the past 5 and 10 years.

I have done well with this stock. My total return to the end of January 2017 is 12.93% per year with 8.34% per year from capital gains and 4.59% per year from dividends.

The 5 year low, median and high median Price/Earnings per Share Ratios are 17.66, 19.25 and 20.07. The 10 year values are 14.31, 16.26 and 18.06. The historical ones are 13.06, 15.05 and 16.96. The current P/E Ratio is 16.34 based on a stock price of $45.27 and 2017 EPS of $2.77. This testing suggests that the stock price is reasonable and around the median.

P/E Ratios have been increasing. Part of this is due to low EPS in 2016 which is expected to increase in 2017. The low EPS was due mostly to higher interest charges for debt incurred for the TECO purchase. But EPS is expected to rise in 2017 back to around that of 2015.

I get a Graham Price of $42.18. The 10 year low, median and high median Price/Graham Price Ratios are 0.98, 1.17 and 1.39. The current P/GP Ratio is 1.07. This stock price testing suggests that the stock price is reasonable and below the median.

I get a 10 year Price/Book Value per Share Ratio of 1.84. The current P/B Ratio is 1.59 a values some 14% lower. The current P/B Ratio is based on a stock price of $45.27 and BVPS of $28.54. This stock price testing suggests that the stock price is reasonable and below the median.

I get a historical median dividend yield of 4.76%. The current dividend yield is some 3% higher at 4.62%. The current dividend yield is based on dividends of $2.09 and a stock price of $45.27. This stock price testing suggests that the stock price is reasonable and around the median. Note that both the 5 year and 10 year median dividend yields are lower than the current one with the 5 year median at 4.22% and the 10 year at 4.29%.

When I look at analysts' recommendations, I find Buy, Hold and Underperform recommendations. Most of the recommendations are a Buy, but the consensus recommendation would be a Hold. The 12 month stock price is $52.88. This implies a total return of 21.43% with 16.81% from capital gains and 4.62% from dividends.

Kay Ng of Motley Fool thinks this stock is a good investment. There is an article where Emera announces in the Street Insider the TECO Energy acquisition. Wayne Landers on Sports Perspective talks about National Bank Financial raising their 2017 EPS for Emera. A Report by DividendChannel.com on NASDAQ talks about this stock being named as a Top 25 dividend stock.

Emera Inc. is geographically diverse energy and services company headquartered in Halifax, Nova Scotia. The company invests in electricity generation, transmission and distribution, as well as gas transmission and utility energy services. Emera has investments throughout northeastern North America, and in four Caribbean countries. Its web site is here Emera Inc.

The last stock I wrote about was about was Manulife Financial Corp. (TSX-MFC, NYSE-MFC)... learn more . The next stock I will write about will be Bombardier Inc. (TSX-BBD.B, OTC-BDRBF)... learn more on Friday, February 24, 2017 around 5 pm. Tomorrow on my other blog I will write about If I knew then... learn more on Thursday, February 23, 2017 around 5 pm.

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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.