Canadian utility stocks: Emera’s deal, rate-base growth, yields and analyst targets

Eight liquid Canadian names — Fortis, Hydro One, Emera, Canadian Utilities, Brookfield Renewable, Capital Power, ATCO and Algonquin — add up to about CA$144 billion of market value on the November 9, 2026 screener. The sum double-counts Canadian Utilities, because ATCO still controls it. Over the past month the peer median is up about 3.1%, ahead of the S&P/TSX Composite’s approximate +1.4%. Over one year the median is only about +1.5%, far behind the Composite’s approximate +18%. Setup for this living note: a yield sector that did not get the bank or pipeline re-rating, with a late-2027 merger sitting on top of three of the rows.

Canadian utility snapshot: market cap, P/E, yield and returns vs the TSX

Metric	Peer set (8)	vs TSX (approx.)
Combined market cap	~CA$151.8B	—
Median trailing P/E	28.0x	—
Median forward P/E	19.5x	—
Median indicated yield	3.79%	—
Median 1M price return	+6.8%	TSX ~+1.4%
Median 1Y price return	+9.1%	TSX ~+18.2%

Screener as of November 9, 2026 (CAD; merge tsx-2026-11-09.csv, 2,564 rows). Peer set: FTS, H, EMA, CU, BEP.UN, CPX, ACO.X, AQN. Medians skip blank cells; P/E medians skip non-positive multiples. The TSX column is the approximate index return carried from the October 26 build and was not re-pulled for this refresh.

November 9, 2026 refresh. Between the November 3 and November 9 screener files the median peer price moved +2.4%. Best: Brookfield Renewable (+4.8%) and Hydro One (+3.2%). Weakest: Algonquin (−0.6%). The snapshot and every peer table below are on the November 9 file. Commentary paragraphs between the tables were written on the October 25 file and quote those figures unless they give a later date.

The income case is intact: indicated yields run from Hydro One at 2.52% to Brookfield Renewable at 5.39%, with the median at 4%. The valuation case depends on which earnings you use. Trailing P/E is not a clean sector multiple while Canadian Utilities prints 292.9x and Capital Power 114.8x.

What is driving Canadian utility stocks: the Emera deal, November plans and the Bank of Canada

November 9, 2026 update. Emera reported third-quarter adjusted EPS of C$0.85 on November 6 and unveiled a C$21.5 billion five-year capital plan, about 82% in Florida, targeting 7.5–8.5% rate-base growth through 2031. Between the November 3 and November 9 screener files the peer median price moved +2.4% (Brookfield Renewable +4.8%, Hydro One +3.2%; Algonquin −0.6%). On October 28, 2026 the Bank of Canada raised the overnight target by 25 basis points to 2.50%, its first hike since July 2023 and the end of seven straight holds at 2.25%. It said further increases may be needed but it would proceed carefully; the next decision is December 9. Fortis (November 3) and Hydro One (November 10) are not summarized here. Calendar items below dated November 3–8 have since reported; this update summarizes only the results named here.

1. October 6, 2026 — Emera, ATCO and Canadian Utilities sign a definitive agreement. Emera is buying Canadian Utilities in an all-share deal valued at about C$14.3 billion. Class A holders other than ATCO get 0.755 of an Emera share; Class B holders get 0.819. ATCO holders get 0.865 of an Emera share plus a share of “New ATCO,” the spin-off for housing, defence, ports and retail energy. After closing, existing Emera holders own about 60% and former Canadian Utilities and ATCO holders about 40%. Closing is targeted for the third or fourth quarter of 2027, subject to the usual regulators. Canadian Utilities CEO Bob Myles said on the call that this is not a synergy deal. The combined plan is about C$32 billion of capital spending through 2030, 7% to 8% rate-base growth off a base near C$45 billion, with about 95% of earnings regulated and about 80% from Florida and Alberta. Emera kept a 1% to 2% dividend-growth target.

2. November 3, 2026 — Fortis third quarter and a new five-year plan. Fortis said on October 5 that it will release third-quarter results and the 2027–2031 capital outlook before the open on November 3, with a call at 8:30 a.m. ET. David Hutchens is CEO and Jocelyn Perry is CFO. For the largest name in this table, that plan is the catalyst, not the Emera merger.

3. November 6, 2026 — Emera’s quarter and its own 2027–2031 plan. Emera said on October 9 that it will release third-quarter results and the capital and funding plan before the open on November 6, with a call at 9:30 a.m. Atlantic / 8:30 a.m. ET. That is the first full look at how Emera funds the deal and the rate base at the same time. Second-quarter adjusted EPS was C$0.69, down from C$0.79 a year earlier (August 7).

4. November 10, 2026 — Hydro One. Hydro One will release third-quarter results before the open on November 10, with a call at 8:00 a.m. ET (company release, October 9). Hydro One is the Ontario wires pure play and the name in this set with the lowest yield.

5. October 28, 2026 — Bank of Canada hike. On October 28, 2026 the Bank of Canada raised the overnight target by 25 basis points to 2.50%, its first hike since July 2023 and the end of seven straight holds at 2.25%. It said further increases may be needed but it would proceed carefully; the next decision is December 9. For utilities the channel is allowed returns, discount rates and the cost of funding capital plans, not bank net-interest margins. A firmer rate path raises the hurdle on a sector that already lagged the TSX over one year.

6. Algonquin is the recovery row, not a second Fortis. Algonquin’s five-year price return is about −60% and the ten-year is about −36%. It is liquid (the high-volume common) and it is in this note because investors still trade it as a utility turnaround. It is not the same business as Hydro One’s rate base.

Which Canadian utility stocks are leading and lagging

One month: ATCO (+10.8%) leads, then Fortis (+7.9%) and Hydro One (+6.5%). Softest: Brookfield Renewable (−2.8%), Capital Power (−2.6%) and Canadian Utilities (−2.3%). The month belongs to the deal parent and the two large regulated holds, not to the power producers.

One year: ATCO (+50.3%) is in a different zip code, then Canadian Utilities (+22.8%) and Fortis (+12.3%). Capital Power (−14.1%) is the laggard, then Algonquin (−6.9%). Emera is about flat (−0.6%). Relative to the TSX’s approximate +18% one-year move, only ATCO and Canadian Utilities clearly won. The merger premium is already in ATCO. It is not in the sector median.

Canadian utility peer comparison: size, performance, valuation, dividends and targets

Peer set: Fortis (FTS), Hydro One (H), Emera (EMA), Canadian Utilities (CU), Brookfield Renewable (BEP.UN), Capital Power (CPX), ATCO (ACO.X) and Algonquin (AQN). Enbridge, TC Energy and AltaGas stay on the midstream page. AltaGas is the utility-and-midstream hybrid and is not repeated as a core row here. Brookfield Infrastructure, Northland Power and TransAlta are left out so this table stays with regulated holds plus the two power names investors actually trade against them. Preferred shares are out. The October 7 Emera brief left Capital Power out to keep a six-row stock table. It is in this sector note on purpose, as the contracted generator next to Brookfield Renewable.

Canadian utility overview: price, market cap, revenue and earnings

Company (Ticker)	Price	Market cap	Revenue (LTM)	Net income (LTM)
Fortis (FTS)	$84.91	$43.4B	$12.5B	$1.9B
Hydro One (H)	$57.68	$34.3B	$9.5B	$1.4B
Emera (EMA)	$71.59	$22.0B	$8.6B	$1.0B
Canadian Utilities (CU)	$52.19	$14.5B	$3.8B	$124M
Brookfield Renewable (BEP.UN)	$43.93	$12.9B	$9.3B	−$276M
Capital Power (CPX)	$63.61	$10.0B	$3.8B	$25.0M
ATCO (ACO.X)	$85.30	$8.6B	$5.3B	$182M
Algonquin (AQN)	$7.80	$6.1B	$3.5B	$206M
Average	—	$19.0B	$7.0B	$575M

Source: TSX screener merge tsx-2026-11-09.csv (2,564 rows, November 9, 2026) · CAD · LTM = last 12 months. Average includes every row.

Fortis and Hydro One are the scale poles, together about CA$74 billion. Emera is the deal issuer at CA$21 billion. Canadian Utilities’ CA$124 million of trailing earnings is why its trailing multiple is not usable; the October 3 brief already flagged one-off items. Brookfield Renewable is a partnership with a trailing loss, not a provincial rate-base utility. ATCO is smaller than the subsidiary it controls because the market is capitalizing the parent, not a second full copy of Canadian Utilities — which is also why adding the two market caps overstates the group.

Canadian utility performance: returns from one month to ten years

Company (Ticker)	1M	3M	6M	YTD	1Y	5Y	10Y
Fortis (FTS)	+12.8%	+8.4%	+10.9%	+18.6%	+19.3%	+52%	+96%
Hydro One (H)	+12.6%	+2.2%	−1.7%	+5.6%	+11.2%	+90%	+141%
Emera (EMA)	+7.7%	+1.0%	−1.5%	+5.9%	+7.1%	+22%	+56%
Canadian Utilities (CU)	+3.5%	−1.8%	+8.5%	+22.3%	+32.8%	+47%	+39%
Brookfield Renewable (BEP.UN)	+4.6%	−4.5%	−6.9%	+17.3%	+2.0%	−11%	+111%
Capital Power (CPX)	−0.6%	−1.9%	−4.1%	+8.7%	−9.3%	+55%	+214%
ATCO (ACO.X)	+6.0%	+11.8%	+25.9%	+51.1%	+60.8%	+107%	+85%
Algonquin (AQN)	+8.2%	−2.5%	−11.1%	−7.7%	−1.5%	−56%	−32%
Average	+6.8%	+1.6%	+2.5%	+15.2%	+15.3%	+38%	+89%

Source: TSX screener merge tsx-2026-11-09.csv (2,564 rows, November 9, 2026) · CAD · price returns. Bold = leader on 1M and on 1Y. Average skips blanks.

The one-year average of +8.4% is ATCO and Canadian Utilities doing the work. Strip the deal and the sector looks like a bond proxy that lost to the index. Three-month returns are negative for every name except ATCO. That is the digestion after a spring rally, visible in Fortis’s year-to-date +13.8% against its three-month −1.7%.

Canadian utility valuation: P/E, forward P/E, price to book and price to sales

Company (Ticker)	P/E	Fwd P/E	PEG	P/S	P/B	P/FCF
Fortis (FTS)	24.1	22.5	5.20	3.41	1.81	—
Hydro One (H)	24.5	24.5	1.88	3.53	2.66	—
Emera (EMA)	22.6	20.2	2.87	2.51	1.70	—
Canadian Utilities (CU)	308.3	19.2	—	3.73	2.82	64.8
Brookfield Renewable (BEP.UN)	—	—	—	1.35	2.37	—
Capital Power (CPX)	—	19.5	—	2.65	2.11	67.8
ATCO (ACO.X)	53.4	16.8	—	1.78	2.02	26.0
Algonquin (AQN)	31.5	14.1	—	1.74	0.98	—
Average	77.4	19.5	3.31	2.59	2.06	52.9

Source: TSX screener merge tsx-2026-11-09.csv (2,564 rows, November 9, 2026) · CAD. Average skips blanks; one large multiple can dominate a column average, so read the medians in the snapshot.

Emera (21.6x trailing, 18.6x forward) is the cleanest large-cap multiple in the regulated group. Fortis and Hydro One cluster just above 23x, and Hydro One’s forward multiple (23.5x) does not compress. Canadian Utilities at 292.9x and Capital Power at 114.8x are thin-earnings artifacts; Canadian Utilities’ forward multiple (19.2x) is the number that belongs in a comparison, and Capital Power’s 42.8x forward says the Street’s next-year earnings estimate is still modest. Algonquin at 0.95x book is the only name in the set under book. ATCO at 16.8x forward is cheap against Fortis only if the New ATCO spin-off is worth what the October jump implied.

Canadian utility dividends: indicated yield and payout ratio

Company (Ticker)	Dividend / share	Yield (ind.)	Payout ratio
Fortis (FTS)	$2.48	3.13%	72.8%
Hydro One (H)	$1.31	2.40%	57.4%
Emera (EMA)	$2.91	4.14%	92.1%
Canadian Utilities (CU)	$1.83	3.44%	1066.7%
Brookfield Renewable (BEP.UN)	$2.08	5.01%	—
Capital Power (CPX)	$2.69	4.42%	—
ATCO (ACO.X)	$2.02	2.44%	126.6%
Algonquin (AQN)	$0.36	4.63%	146.4%
Average	$1.96	3.70%	260.3%

Source: TSX screener merge tsx-2026-11-09.csv (2,564 rows, November 9, 2026) · CAD. DPS is annual; yield is indicated. Payout is trailing; negative payouts show as — and are left out of the average.

Hydro One and ATCO yield about 2.5%. They are total-return wires, not the income sleeve. Emera at 4.31% still carries the sector’s flagship coupon, with a payout just under 100% of trailing accounting earnings. Algonquin’s 4.82% and Brookfield Renewable’s 5.39% are the high yields, and both sit on weaker earnings coverage. ATCO’s payout above 100% is the parent’s accounting, not a second Canadian Utilities dividend.

Canadian utility analyst targets: ratings, one-year targets and upside

Company (Ticker)	Rating	Price	Target 1Y	Upside	Analysts
Fortis (FTS)	Neutral	$84.91	CA$79.23	−6.7%	10
Hydro One (H)	Neutral	$57.68	CA$57.27	−0.7%	9
Emera (EMA)	Neutral	$71.59	CA$76.25	+6.5%	9
Canadian Utilities (CU)	Buy	$52.19	CA$54.71	+4.8%	7
Brookfield Renewable (BEP.UN)	Buy	$43.93	CA$41.50	−5.5%	2
Capital Power (CPX)	Buy	$63.61	CA$79.80	+25.5%	10
ATCO (ACO.X)	Buy	$85.30	CA$81.86	−4.0%	6
Algonquin (AQN)	Buy	$7.80	CA$7.33	−6.0%	7
Average	—	—	CA$59.74	+1.7%	—

Rating = screener analyst rating on the November 9, 2026 file. Target 1Y and analyst counts are the MarketBeat TSE consensus figures (CAD) pulled October 27, 2026, not re-pulled in bulk for this refresh (Royal Bank spot-checked November 9, unchanged). Upside is the October 27 target versus the November 9 screener price. The dollar average mixes very different share prices; read the upside column.

Fortis and Algonquin already trade above the average target. ATCO is essentially on the target (CA$81.86 versus $81.36) after the one-year run. The room that is left in the regulated group is Emera (+11.1%) and Canadian Utilities (+10.3%) — the two sides of the same deal — plus a mid-single-digit gap at Hydro One. Capital Power (+30.9% to CA$79.80, 10 analysts) is the outlier, and it is a power-producer target, not a Fortis target.

Brookfield Renewable’s TSE page is a two-analyst print at CA$41.50. It is shown and kept out of the average. MarketBeat’s NYSE page for the same partnership, pulled the same day, is US$37.14 from 16 analysts. That figure is US dollars against the US listing. It is not converted and not averaged.

How regulated utilities differ from power producers and from the merger

Fortis is the diversified regulated hold: Canada, the United States and the Caribbean, and the name whose November 3 plan sets the tone for the group. Hydro One is Ontario transmission and distribution, lowest yield, highest price-to-book in the regulated cluster (2.51x). Emera is Florida-heavy and the company issuing the shares. Canadian Utilities is the Alberta gas and electric rate base being acquired. ATCO is the parent, and after the spin-off it is also the housing, defence, ports and retail-energy stub.

Brookfield Renewable and Capital Power are the power rows. Brookfield Renewable is a global yieldco partnership with a trailing loss and the highest yield in the set. Capital Power is the Alberta-centred contracted generator whose trailing and forward multiples say earnings are still thin relative to the price. Algonquin is the post-reset utility, cheap on book, still negative over five and ten years.

The merger is not a fourth business model. It is a clock. Nothing in the C$32 billion plan shows up as combined earnings until late 2027. Until then, Emera, Canadian Utilities and ATCO can move on deal headlines while Fortis and Hydro One move on their own capital plans.

Bull case for Canadian utility stocks

1. The coupon is still near 4% while the one-year tape lagged the TSX. A median indicated yield of 4.00% against a median one-year price return of about +1.5% is the set-up income investors wanted from banks and did not get. Fortis at 3.16% and Emera at 4.31% are the core versions.

2. Rate-base growth has dates on it. Fortis (November 3), Emera (November 6) and Hydro One (November 10) all put new numbers in front of the market within two weeks. The Emera deal’s 7% to 8% rate-base path is a published target, not a slogan, even if it is a 2027 closing story.

3. Capital Power and Emera are not priced like Fortis. Capital Power’s CA$79.80 target and Emera’s CA$76.25 target are the two CAD gaps above 10%, with 10 and 9 analysts. That is a different bet from owning Hydro One at 23x forward earnings.

Bear case and risks for Canadian utility stocks

1. The sector already lost a year to the index. Median +9.1% on the November 9 file versus about +18% for the TSX is the cost of a bond-proxy tape. The Bank of Canada’s October 28 hike to 2.50% raised the discount rate on those rate bases, and the November plans have to answer it.

2. The merger is dilution now and growth later. Emera is issuing shares for a deal management says is not about synergies, with closing in late 2027. ATCO is already on its CA$81.86 target. There is not much left in the parent if the spin-off is the piece investors already paid for in October.

3. Thin trailing earnings and stretched payouts. Canadian Utilities at 292.9x, Capital Power at 114.8x trailing and 42.8x forward, ATCO and Algonquin with payouts above 100%, and Brookfield Renewable’s loss all say “yield” and “earnings coverage” are not the same sentence. A soft regulatory decision hits the dividend debate faster here than it does at Hydro One.

What to watch next for Canadian utilities: three capital plans, the Bank of Canada and the deal

1. December 9, 2026 — next Bank of Canada decision. The funding-cost backdrop for every capital plan in this note, now at a 2.50% overnight target.

2. November 3 — Fortis third quarter and the 2027–2031 outlook, 8:30 a.m. ET. The largest regulated hold, and the cleanest read on rate-base growth without a merger overlay.

3. November 6 — Emera third quarter and the 2027–2031 capital and funding plan, 8:30 a.m. ET. How many shares, how much debt, and whether the 1% to 2% dividend-growth target survives the first full update after the deal.

4. November 10 — Hydro One, 8:00 a.m. ET. Ontario rate base, with no Emera share issuance in the story.

5. Deal mechanics into 2027. AUC, FERC and the other approvals the October briefs already flagged, plus whatever “New ATCO” is actually worth when the stub starts trading. Canadian Utilities’ depressed trailing earnings need a bridge to the 19.2x forward multiple before that close.

Related StockSummarizer videos: Fortis, Emera and Canadian Utilities

• Fortis (FTS) — the C$32 billion capital plan · Watch on YouTube
• Emera (EMA) — the C$14.3 billion Canadian Utilities deal · Watch on YouTube
• Canadian Utilities (CU) — TD’s upgrade and the Emera exchange ratio · Watch on YouTube

Hydro One, Algonquin, Brookfield Renewable, Capital Power and ATCO are not in the coverage log yet. The Emera and Canadian Utilities briefs use earlier screener files (October 3 and October 8) and the Fortis brief is dated November 4. The tables on this page are on the November 9 screener.

Data notes: screener date, peer set and where the targets come from

November 9, 2026 refresh. The snapshot strip and every peer table now come straight from merge tsx-2026-11-09.csv (2,564 rows): prices, market caps, LTM revenue and net income, returns, multiples, dividends and screener ratings. Average rows skip blanks. Analyst targets were not re-pulled in bulk: Target 1Y and analyst counts are still the MarketBeat TSE figures pulled October 27, 2026 (a November 9 spot-check of Royal Bank’s MarketBeat page showed the consensus unchanged at C$292.86 on 12 analysts, with the latest broker action dated September 3); upside compares those targets with the November 9 price. Rows for tickers missing from the November 9 export keep the previous build’s values and are named under the snapshot. The November 9 update paragraph uses the news and company releases listed under Sources, checked November 9, 2026; the TSX comparison column is the approximate index return carried from the October 26 build. The method notes below describe the October 27 build and still apply to the commentary written on it.

Prices are the October 23, 2026 TSX closes (the close inside merge tsx-2026-10-25.csv; the file itself is not in this checkout). Market cap, revenue, net income, trailing P/E, P/S, P/B, P/FCF, annual DPS, indicated yield and payout are reconstructed from TradingView Canada fields that reproduce that file on the published Royal Bank, Enbridge and October 26 Constellation rows, with market cap and the live yield scaled back to the October 23 close. P/S can sit about 0.02 away from the file. PEG is the TradingView trailing PEG scaled the same way, blank above 30 or when missing. Forward P/E is October 23 price ÷ TradingView’s next-fiscal-year EPS consensus, pulled October 27, 2026. It is not the file’s forward-P/E cell (Royal Bank: file 16.2, this method 17.2). Performance is the exchange-close price return on the windows under the performance table, not the file’s Perf column (Royal Bank year-to-date matches; the one-month does not). Peer rule: liquid Canadian utilities — FTS, H, EMA, CU, ACO.X, AQN, plus BEP.UN and CPX as the renewable partnership and the contracted generator. Excluded: ALA (on the midstream page), ENB, TRP, Brookfield Infrastructure, Northland Power, TransAlta, and preferreds. Average rows include all eight names and skip blank cells. The market-cap sum double-counts Canadian Utilities inside ATCO. Target 1Y is MarketBeat TSE consensus in CAD, pulled October 27, 2026. The average uses the seven targets with at least five analysts. Brookfield Renewable’s TSE consensus is CA$41.50 from 2 analysts and is excluded from the average; the NYSE consensus the same day is US$37.14 from 16 analysts and is not converted. Screener ratings are in the analyst table. Algonquin and Brookfield Renewable report in US dollars; revenue and earnings are the CAD figures in the TradingView field, the same treatment that matched Constellation’s CAD revenue in the October 26 brief. TSX Composite 1M/1Y are approximate public index price returns near October 26, 2026. Snapshot medians use the eight-name set; trailing P/E uses the seven names with a positive multiple.

Sources for the Emera deal, the November plans, targets and the screener

• TradingView Canada scanner and TSX closes for October 23, 2026, cross-checked against merge tsx-2026-10-25.csv on the published Royal Bank, Enbridge and Constellation rows
• Emera, ATCO and Canadian Utilities definitive agreement, October 6, 2026, as reported in the StockSummarizer Emera brief (October 7, 2026) and Canadian Utilities brief (October 9, 2026): about C$14.3 billion, exchange ratios 0.755 / 0.819 / 0.865, C$32 billion capital plan through 2030, close targeted Q3–Q4 2027
• Fortis Inc., teleconference and webcast on November 3, 2026, for third-quarter results and the 2027–2031 capital outlook (news release October 5, 2026)
• Emera, teleconference on November 6, 2026, for third-quarter results and the 2027–2031 capital plan (news release October 9, 2026); Q2 2026 adjusted EPS C$0.69 versus C$0.79 (August 7, 2026)
• Hydro One, third-quarter 2026 results before the open on November 10, 2026, call 8:00 a.m. ET (release October 9, 2026)
• Bank of Canada policy rate, 2.25% to October 27, 2026; raised to 2.50% on October 28, 2026 (see the November 9 sources below)
• MarketBeat TSE forecast pages for FTS, H, EMA, CU, ACO.X, AQN, CPX and BEP.UN, and the NYSE:BEP page, pulled October 27, 2026
• S&P/TSX Composite approximate 1M/1Y price returns (public index trackers near October 26, 2026)
• StockSummarizer coverage log — Emera brief dated 2026-10-07; Canadian Utilities brief dated 2026-10-09
• Emera third-quarter 2026 results and five-year capital plan release, November 6, 2026
• Bank of Canada rate announcement, October 28, 2026 (overnight target raised to 2.50%; Bank Rate 2.75%), as reported by Reuters and CBC; next decision December 9, 2026
• TD Securities, Weekly Bottom Line, November 6, 2026 (WTI, copper, gold, Canada 10-year yield); Baystreet.ca and Investcom TSX close reports, November 6, 2026 (S&P/TSX Composite 35,789.09, +0.48% on the week; October unemployment rate 6.7%)

Media credits

Wikimedia Commons photographs, cropped to 16:9 and resized for this page. No AI-generated images were used. Company logos and video thumbnails on linked stock summaries keep the credits on those pages.

• Hero: “Sir Adam Beck Hydroelectric Generating Station beside the Niagara River” by Changku88, CC BY-SA 4.0, via Wikimedia Commons.
• Niagara lines: “Power lines and Sir Adam Beck Station in northern Niagara Falls, ON, July 2023” by Mr. Matté, CC BY-SA 4.0, via Wikimedia Commons.
• Alberta lines: “2019-05-30 Power lines and grassland along Trans-Canada Highway west in Rocky View County” by TagaSanPedroAko, CC0, via Wikimedia Commons.

By Andrew · stocksummarizer.com