Hydro One is expensive. Maybe that’s not a problem now
Hydro One's share price has increased significantly over the past five years, outperforming the S&P/TSX Composite Index. Despite its high valuation and lower dividend yield compared to peers, the company is positioned to benefit from rising electricity demand. The Canadian government's plan to double the power grid by 2050 further supports the growth potential for utilities like Hydro One.
- ▪Hydro One's share price has gained more than 92 percent over the past five years.
- ▪The company's forward price-to-earnings ratio is over 25, significantly higher than its 10-year average of just over 20.
- ▪Hydro One's dividend yield is currently at 2.4 percent, lower than many of its peers.
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Open this photo in gallery:Hydro One workers at the Husky Travel Centre in Niagara-on-the-Lake, Ont., in September, 2017. Share prices for Hydro One gained more than 93 per cent over the past five years.Tara Walton/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountUtilities are no longer cheap stocks. But Ottawa’s plan to double Canada’s power grid by 2050 underscores why investors have been paying up for these stalwarts anyway: They can count on attractive growth – and big dividend hikes – for decades.Toronto-based Hydro One Ltd.
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