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Hydro One

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  • Feb 13th, 2024 9:19 am
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Dec 8, 2010
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As low as -30 doesn't seem to leave much margin for error...!
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Feb 11, 2009
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Thanks, had some shares sitting from the IPO days, but haven't been following much
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Aug 17, 2008
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Despite the all opportunities and prospects for H and the way passive money may treat H, I can't help thinking the dividend yield is too skinny => price too high. Q1/23 ER on May 5.
Answer not a fool according to his folly, lest thou also be like unto him = Never argue with an idiot, they'll only bring you down to their level & beat you with experience
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Dec 5, 2006
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MrMom wrote: Despite the all opportunities and prospects for H and the way passive money may treat H, I can't help thinking the dividend yield is too skinny => price too high. Q1/23 ER on May 5.
You are right. G&M had an article talked about it

"Hydro One’s dividend yield is curiously low. Here’s why that could be a problem"


https://www.theglobeandmail.com/investi ... end-yield/

And simply wall st think it's 56% overvalued lol
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Dec 12, 2009
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smartie wrote: You are right. G&M had an article talked about it

"Hydro One’s dividend yield is curiously low. Here’s why that could be a problem"


https://www.theglobeandmail.com/investi ... end-yield/

And simply wall st think it's 56% overvalued lol
The market can remain irrational for long periods of time... Face With Tears Of Joy
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Sep 22, 2005
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EV charging has increased electricity demand?
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will888 wrote: The market can remain irrational for long periods of time... Face With Tears Of Joy
10% inflation premium, 10% ukraine war premium, 20% EV progress, 20% global warming, 20% ontario premium.

Undervalued!
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Aug 17, 2008
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Thanks @smartie

IDK how that blog arrived at a $25+ FV, but all else being equal, I would be backing up the truck at that price. My cost in one account is just a couple of dollars below that.

Attached is a historical FV vs Price chart from Morningstar.

The biggest risk by a wide margin is political interference, with the second being infrastructure IMO.

I've posted about the growth opportunities, but it seems they being counted on coming to fruition more than I'd like.
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  • Hydro One Fair Value vs Mkt by Morningstar - Copy.png
Answer not a fool according to his folly, lest thou also be like unto him = Never argue with an idiot, they'll only bring you down to their level & beat you with experience
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Dec 12, 2009
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I would consider adding if the share price goes to the high $20s. $40 is too rich for my blood. If there is more legs in the rally, maybe I will have to consider selling some of the position.
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In case anyone is wondering the earnings chart looks pretty similar too. It's not one I hold so I don't follow it too closely, but now that it has more public history I'm going to put it on my DGI watch list.
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Aug 17, 2008
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In line with consensus expectations. <ed: was +29 cents via LSEG formerly Refinitiv>

Hydro One Reports Fourth Quarter Results
https://www.hydroone.com/investorrelati ... esults.pdf

• Fourth quarter basic earnings per share (EPS) of $0.30 was comparable to EPS of $0.30 for the same period in 2022. For the full year, basic EPS of $1.81 was 3.4% higher than basic EPS of $1.75 in 2022.

• EPS for the quarter was unchanged year-over-year largely due to higher average monthly peak demand and energy consumption, as well as higher revenues resulting from Ontario Energy Board (OEB)-approved 2023 transmission rates, offset by higher financing charges and depreciation expense, as well as the impact of regulatory adjustments including the recognition of Conservation and Demand Management (CDM) revenues in the prior year and higher earnings sharing in the current period.
Answer not a fool according to his folly, lest thou also be like unto him = Never argue with an idiot, they'll only bring you down to their level & beat you with experience

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