I value your opinion & am wondering what you think of Fortis for it’s dividend & is there any upside.
Thanks for the assignment and your kind words. This will be the second time that I inspect the charts for Fortis Inc. (FTS TSX). The last was on April 27, 2015 when the shares were trading for $39.66 and the dividend offered a yield of 3.43%. Tom had held the shares for a long time and was concerned about changes in the executive suite and on the board of directors. He was afraid that the company would end up being run by bankers and accountants.
The research indicated that the best way to approach FTS was to accumulate the shares. The company was coming off a 52-week high and trading in a tight range but there wasn’t enough evidence that to suggest that the stock was about to hit the skids. In retrospect that was the right call. The shares caught a ride to a new 52-week high of $44.87 in July of 2016.
Another audit of the charts will form the basis of my opinion on how best to proceed.
The three-year chart indicates that the shares caught a lift off of $35.00 in February of 2016 and ran hard to the 52-week high. What is evident is that the stock moved up hard and fast in late June and is now just pulling back to a ledge of support near $43.00.
The six-month chart pulls focus on the MACD and the RSI turning higher as FTS moved off support at $43.00. The next flex point for the stock comes on July 29 when its Q2 results are scheduled for release.
I would continue to call FTS an accumulate. It has most of its assets in regulated markets in the U.S., Canada, and the Caribbean. The company also has a 43 year history of paying and increasing its dividend which currently yields 3.43%. You can expect fluctuations in the trading price of the stock but the underlying value of the assets has tended to prove up over a longer term investment horizon.
Next time I will examine the case for Kayne Anderson Energy Development Co. (KED NYSE) for Peter.
Make it a profitable day and happy capitalism!