Q: If you were to only hold one utility which would you choose? Would FTS or BIP.UN be one of them? If so, which would you select between those two for total return?
5i Research Answer:
Yes. We like both a lot, and they are similar in size. It is almost impossible to argue with FTS's long term dividend record, and it remains one of our favourites. However, if only one is owned, BIP.UN has a more diversified business overall, which might provide less volatility to cash flows. It also has a higher yield, and could provide more growth potential, so it wins this contest today.