- Energy Distributors: A Fortis Inc. (TSE:FTS) Comparison - Part 3
The second entry in my comparison of energy distributors is Fortis.
Fortis operates mostly in Canada with some operations in the Caribbean and the US. Through Terasen they serve 96% of the population in BC for natural gas. It's somewhat of a monopoly in BC with respect to natural gas and not surprising considering it was formally BC Gas. They also own hotels through Fortis Properties in the atlantic provinces.
Earnings History
Fortis' earnings have been growing albeit slowly. I suppose it's to be expected considering energy distribution is regulated.
Fortis operates mostly in Canada with some operations in the Caribbean and the US. Through Terasen they serve 96% of the population in BC for natural gas. It's somewhat of a monopoly in BC with respect to natural gas and not surprising considering it was formally BC Gas. They also own hotels through Fortis Properties in the atlantic provinces.
Earnings History
Fortis' earnings have been growing albeit slowly. I suppose it's to be expected considering energy distribution is regulated.
- 2010 earnings per share $1.55 (based on today's price).
- 2009 earnings per share $1.54.
- 2008 earnings per share $1.56.
- 2007 earnings per share $1.40.
- 2006 earnings per share $1.42.
- 2005 earnings per share $1.35.
- 2004 earnings per share $1.07.
Dividend History
Here is the type of graph we like to see when we look at dividends. Fortis must be proud of it since they maintain the graph with all the details on their website. I say this because I usually have to put the graphs together.
Terasen Gas (Formally BC Gas) was acquired in 2007 adding over 900,000 customers.
Stock Price Comparison
Here is a comparison of Fortis with Just Energy and Enbridge. I keep Enbridge as a comparison because it is the biggest player.
Thoughts
Fortis has a market capitalization of 4.8B$. Their payout ratio is currently at 67.5% up from 58.6% in 2007. Their dividend growth has come mostly from an increase in payout considering their EPS has been relatively flat. Their business is pretty predictable though and I would estimate that over 75% of their business is regulated.
Here is the type of graph we like to see when we look at dividends. Fortis must be proud of it since they maintain the graph with all the details on their website. I say this because I usually have to put the graphs together.
Terasen Gas (Formally BC Gas) was acquired in 2007 adding over 900,000 customers.
Stock Price Comparison
Here is a comparison of Fortis with Just Energy and Enbridge. I keep Enbridge as a comparison because it is the biggest player.
Thoughts
Fortis has a market capitalization of 4.8B$. Their payout ratio is currently at 67.5% up from 58.6% in 2007. Their dividend growth has come mostly from an increase in payout considering their EPS has been relatively flat. Their business is pretty predictable though and I would estimate that over 75% of their business is regulated.
Is Fortis a company you invest in?
- Bank of Nova Scotia (BNS)
- Bank of Montreal (BMO)
- Crescent Point Energy (CGP)
- Kimberly-Clark Corporation (KMB)
- AT&T (T)
- Telus (T.A)
- Bell Canada (BCE)
- RioCan (REI.UN)
- Cominar Real Estate (CUF.UN)
- Just Energy (JE.UN)
- Transcanada Pipeline (TRP)
- TransAlta (TA)
- Fortis (FTS)
- Emera (EMA)
- Enbrdige (ENB)
Company Ticker Quote Shares Market Value Purchased Yield Bank of Montreal BMO.TO $59.68 4.634705 $276.60 4.66% Bell Canada BCE.TO $35.27 3.867149 $136.39 6.02% TransCanada Corp. TRP.TO $37.40 3.776646 $141.25 4.46% Telus T.A $45.00 3.867149 $174.02 5.51% Fortis FTS.TO Company Ticker Quote Shares Market Value Purchased Yield Enbridge ENB.TO $55.86 1.016 $56.75 4.15% RioCan REI.UN $23.03 12.034 $277.14 6.13% SunLife SLF.TO $31.24 1.324 $41.36 4.71% TransAlta Corp Name Stock Price P/E Div. Yield BCE BCE.TO $35.93 13.2 $0.49 5.46% Rogers RCI.B $35.31 13.69 $0.32 3.63% Shaw Communications SJR.B $20.50 16.69 $0.07 4.10% Telus T.TO $45.95 15.28 $0.53 4.61% Manitoba Telecom MBT.TO $29.00 18.23 $0.43 5.93% AT&T T $28.79 8.1 $0.42 5.84% France Telecom FTE $21.15 14.45 $0.77 7.28% Vodafone VOD $26.26 7.76 $0.46 3.50% Telefonica TEF $68.65 7.12 $2.7 7.87% TA.
No comments:
Post a Comment