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The consistent demand for utility services has bolstered the stock performances of many companies in this industry. While they have delivered stable returns this year, some gas, power and water supplying companies also continue to pay steady dividends to their shareholders.
Utilities come under essential services, and that makes them profitable operationally. Hence, investors often explore these stocks for non-risky investments.
Here are three notable utility stocks you should consider adding to your portfolio this year.
1. Fortis Inc (TSX:FTS)
Fortis Inc claims to serve over 2.5 million power and gas customers across North America through its transmission and distribution assets.
Currently priced at C$ 56.14, Fortis stock generated nearly eight per cent return year-to-date (YTD) and surpassed the S&P TSX Electric Utilities Index in the past one year, as per EODHD/Others data.
It also provides a notable dividend of C$ 0.505 per share, which has a dividend yield of 3.6 per cent.
The company garnered adjusted earnings per common share of C$ 2.57 in 2020, marginally up against C$ 2.55 per share in 2019.
Source: Pixabay.com
2. Capital Power Corporation (TSX:CPX)
Capital Power, a North American independent power producer, manages a portfolio of natural gas, wind, solar, solid fuel, and coal energy facilities via its subsidiaries.
The utility stock has yielded more than 10 per cent this year. It grew by 46.61 per cent in the past one year and outperformed the S&P/TSX Independent Power and Renewable Electricity Producers.
On April 21, the stock powered to a 52-week high of C$ 38.63 per share. It is up 62.7 per cent against its 52-week low of C$ 23.72 apiece (May 14, 2020).
Capital Power distributes a dividend worth C$ 0.512 per share quarterly and holds a dividend yield of 5.31 per cent.
The company has also pledged a green initiative of giving up coal facilities by 2023.
3. Emera Incorporated (TSX:EMA)
Emera invests in electricity production and distribution, along with gas supply and utility energy operations.
Its present stock price of C$ 57.93 is inches away from breaching its 52-week high of C$ 58.15 (April 29, 2020).
Emera stock achieved a seven per cent return YTD. It also increased by nine per cent in the last one year to exceed the benchmark index growth in the same period.
Emera is set to distribute a dividend of C$ 0.637 per common share in the current quarter. Its dividend yield rises at 4.402 per cent.
The company’s adjusted earnings per share surged by three per cent year-on-year in 2020. It reported a 39 per cent reduction in its greenhouse gas emission from 2005 and expects to meet the zero-emission target by 2050.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
