Q: I note today that two analysts show FTS as a sell. Would like your opinion on how this might be justified, and your thoughts on the stock. I consider it a core dividend payer in my holdings.
5i Research Answer:
We show 5 BUYs, 8 HOLDs and 4 SELLS. Admittedly, that is a lot of sells for any stocks, typically. But, we have a company with steady cash flow, a dividend record of raising dividends for 50+ years (also increased this week), and a stock that has doubled since 2016. Yes, there is sensitivity to rates here and it is not risk-free. But valuation is reasonable and it is hard to argue with a 50+ year performance record. It has never lost money, as far back as our data goes (1990). We would consider it a 'mom' stock: something we would be comfortable with our mom owning.