Recent Buy - Fortis Inc. (FTS.TO)

On Monday February 12, I bought 40 shares of Fortis Inc. at CA$ 41.29 per share plus commission.

Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean. It generates, transmits, and distributes electricity to approximately 420,000 retail customers in a territory comprising approximately 2,991 square kilometers located in southeastern Arizona, including the greater Tucson metropolitan area in Pima county, as well as parts of Cochise county; and 95,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 2,994 megawatts (MW) comprising 54 MW of solar capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 64 MW; and distributes natural gas to approximately 994,000 customers in approximately 135 communities in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 549,000 customers in southern and central Alberta; owns 4 hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador serving approximately 264,000 customers with an installed generating capacity of 139 MW; and on Prince Edward Island serving approximately 79,000 customers through generating facilities with a combined capacity of 145 MW. Additionally, it provides integrated electric utility service to approximately 65,000 customers in Fort Erie, Cornwall, Gananoque, Port Colborne, and the District of Algoma in Ontario; approximately 43,200 customers on Grand Cayman, Cayman Islands; and approximately 15,000 customers on certain islands in Turks and Caicos, as well as holds long-term contracted generation assets in British Columbia and Belize, and Aitken Creek. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.

 

FTS is a member of Canadian Dividend All-Star List with a 44 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 6.6, 8.3 , 6.3 and 7.1. 

After the latest dividend increase announcement, which was in October last year, Fortis Inc. now pays dividends of CA$ 0.425 per share normally in March, June, September and December.

Details of my purchase:

Some ratings for FTS:

    Yahoo:  Mean Recommendation 2.4, 1y Target Est CA$ 49.17

    Reuters: Mean Rating 2.15
    Morningstar: (****) 

   

At today's exchange rate, this purchase 40 shares of FTS will increase € 32.51 (CA$ 50.66) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 12,170.00. With a purchase price CA$ 41.29 plus commission (CA$ 3.50) my starting yield on cost is 4.11%. After this acquisition, FTS's weight of my portfolio is about 0.27% and its share of future annual dividend income is approximately 0.27%. My purpose is slowly to build up FTS's share of my portfolio, if the price remains at these levels.

Click here to see my portfolio.

Full Disclosure: Long FTS 

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