RE:re investment horizonHow you look at it matters. My investment in FTS has two components of return -- the unrealized capital gain, and the stream of realized dividends. The issue for calculating a return depends upon your choice of denominator. My spreadsheets record current yield and the yield on invested capital.
The yield on invested capital is 6.4% which exceeds current GIC rates, and if held in a non-registered account would represent an additional after- tax benefit as a $1 of dividends is taxed less than a $1 of interest income.
A note via Stockwatch today:
The Globe and Mail reports in its Saturday edition that to become a successful investor all you have to do is identify solid, established companies -- ones with growing sales, earnings and dividends -- and hold them through thick and thin. The Globe's John Heinzl writes that Fortis is a company investors can buy and hold, if not forever, then at least for many years to come. Mr. Heinzl says he personally owns shares in Fortis. He adds that you would be hard pressed to find a more reliable dividend stock than Fortis. Thanks to growing earnings from its regulated gas and electric utilities in Canada, the United States and the Caribbean, Fortis has raised its dividend for 48 consecutive years. It expects to continue hiking its payout by 6 per cent annually through 2025. As the world transitions to greener energy, decarbonization is becoming a key source of growth for Fortis. By expanding wind and solar generation, retiring coal-fired plants, and building transmission lines to connect more renewable energy to the grid, Fortis is targeting a 75-per-cent reduction in greenhouse gas emissions by 2035. Mr. Heinzl expects Fortis to keep its payout ratio at a "comfortable" level of about 77 per cent this year.