Q: Has Hydro One always paid a dividend since it went public? Has it ever decreased the dividend payment ( in dollars)? I am thinking of buying Hydro One as a 5+ year hold.
I am looking for a solid utility with good chance for growth in share price over the long-term, but already own Fortis, so am looking for an alternative to that stock.
What would be a good entry price to buy Hydro One? Thank you.
I am looking for a solid utility with good chance for growth in share price over the long-term, but already own Fortis, so am looking for an alternative to that stock.
What would be a good entry price to buy Hydro One? Thank you.
5i Research Answer:
Hydro went public in late 2015 at $20.50. It paid its first dividend in March 2016, which included the period since IPO (so longer than one quarter). It has never cut or omitted its dividend, and from the 'normalized' rate in 2016 of 21c it has grown to 33.3c today. We would be fine buying H for income and some growth potential. The stock is up 11% this year. We think $48 would work well.