Q: I know you like this name but Im wondering if its overbought at these levels. Buy now or wait for a downturn later?
5i Research Answer:
FTS is largely influenced by earnings, its dividend and interest rates. It has a very impressive long term dividend growth rate. The stock is 19X earnings with a 3.58% dividend. It is up 15% this year. With the likelihood of lower interest rates in Canada, we would remain comfortable buying this with income as the first objective.