Investment Thesis
Emera (EMRAF) [TSX:EMA] revised its dividend growth guidance from 8% annual growth rate to only 4% to 5% through 2021. The revised guidance actually helps Emera to strengthen its balance sheet. The preserved capital can also be used towards future growth projects. Since Emera is a bond proxy stock, rising Treasury yields can negatively impact the company's share price.
Source: YCharts
Emera's revised dividend guidance
Emera reported its Q2 2018 EPS of C$0.48. This was below the consensus of C$0.57 per share. It was also lower than the adjusted EPS of