Canadian utility stocks are some of the best long-term investments on the market. They offer reliable business models that generate recurring revenue streams that, in turn, fund handsome dividends.
Part of that appeal stems from the sheer necessity of the service that they provide. That consistency persists across market cycles, making them ideal long-term holdings to consider.
That being said, several compelling utility stocks report earnings soon.
Here’s a look at what those Canadian utility stocks can offer before and after earnings.
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Fortis: The case for starting before earnings
Fortis (TSX: FTS) is the largest of the three utilities. The company offers electric and natural gas service to customers across Canada, the U.S. and the Caribbean. The company reports on the latest quarter on November 3.
In terms of growth, Fortis has an existing five-year capital plan that extends through 2030. Fortis expects the $28.8 billion plan to drive rate base growth and support its targeted annual dividend increases of 4% to 6% through the end of the decade.
The November update is expected to extend that capital plan through 2031.
Speaking of dividends, Fortis offers a yield of 3.3%. The company also has the second-longest streak of annual dividend increases in Canada, currently at 52 years.
That fact alone makes Fortis one of the top Canadian utility stocks to consider.
Emera and Canadian Utilities: More reasons to wait?
The other two utility stocks for investors to consider right now are Emera (TSX: EMA) and Canadian Utilities (TSX: CU). Both offer compelling cases for investors on their own, but recent events warrant considering them together.
That’s because earlier this month, Emera and Canadian Utilities announced plans to combine, with the merged company operating under the Emera name. The deal is not expected to be finalized until the second half of 2027.
Turning to dividends, both offer attractive payouts. Emera offers a yield of 4.4%, whereas Canadian Utilities offers 3.8%. Similarly, both stocks offer attractive dividend growth streaks.
Emera has provided 20 years of consecutive annual increases, whereas Canadian Utilities has the longest streak in Canada, currently at 54 years of increases.
Investors considering an investment in either company may be more inclined to wait until after the upcoming earnings dates when more clarity on the deal may be provided.
Should you buy these Canadian utility stocks before or after earnings?
Waiting until the companies announce earnings gives investors a chance to fully assess the investment. That’s especially true when there’s uncertainty around recent events, such as the Canadian Utilities and Emera tie-up.
And while waiting doesn’t guarantee a lower purchase price, it can help investors make more informed purchase decisions.
Similarly, an encouraging outlook from one stock could send shares higher before a patient buyer makes a move.
Across the three Canadian utility stocks, I would feel more comfortable investing in Fortis before the earnings announcement.
Both Emera and Canadian Utilities are great investment options too, but I’d prefer to wait and see what the November earnings updates reveal.
