Hydro One (H.TO)

Very defensive cashflow streams. Compared to Fortis, Hydro One has geographical limitations being based only in Ontario. In terms of rising interest rates, it remains low and it is not an immediate concern. Look for a utility that has the ability to increase dividends annually.

He favours Fortis and Algonquin. H-T is a very stable business model. They had aggressive growth projects but they didn't work out. Would like to see more diversification of cashflow since it is very dependant on Ontario. It is a good, durable business. Would not sell it but it may not perform as well as others. Growth platform is limited.

Likes it. OK growth rate. Expensive. AQN and FTS are trading at better levels with nice growth rates and dividend growth. Pretty safe area, but a mistake to buy at the top of the range.

Ontario's current government has made many changes to the Hydro board, a gong show. He is wait-and-see with Hydro and prefers Emera as a utility, which offers better growth and doesn't suffer government meddling. At its core, though, Hydro is a great business as a regulated utility.

They've done well this year, especially with less government influence. He prefers AQN, Fortis and BEP in this space who have better growth and offer wider diversification. H-T is Ontario-centric. It's okay if you hold it.

Sell half of my holdings and buy a utility? It pays a 3.9%. The shares have done well since they abandoned a bid to buy a Washington utility. There's little growth here, though. He prefers Capital Power which is a little riskier and pays a safer dividend. Also look at Innergex or a REIT, if you want income.

H vs. CU Hydro One had serious issues, but a decent dividend. If he had to pick one right now, he'd pick CU. Looks a bit steadier. Hydro One is in nosebleed territory, and looks as though it's starting to come off. CU is consolidating, and looks to go higher short-term. $35 is a good stop level to sell CU, $22 for Hydro One.