HYDRO ONE (H) Stocks

ABOUT HYDRO ONE

Hydro One Limited is Canada’s largest electrical transmission and distribution company based in Ontario. The company owns and operates Ontario’s transmission and low-voltage distribution network and delivers electricity to customers like large industrial entities and municipal utilities across the province.

Hydro One Limited was incorporated in 2015 but its history goes back to 1906 with the establishment of the Hydro-Electric Power Commission of Ontario.

The provincial Energy Competition Act of 1998 privatised Ontario Hydro into separate entities responsible for electrical generation, transmission or delivery, and price management privatization.

OVERVIEW OF HYDRO ONE

• Hydro One Limited is a holding company with four subsidiaries, the largest being Hydro One Networks.
• It operates 97% of the high voltage transmission grid throughout Ontario and serves customers in rural areas across the province in its capacity as Ontario’s largest distribution utility. Its subsidiaries operate through three segments: Transmission, Distribution, and Other Business.
• The company owns and operates approximately 123 000 circuit kilometres of low-voltage distribution network, serves approximately 1.4 million residential, small business, commercial, and industrial customers and has close to 6 000 full time employees.
• They also provide telecommunications support services for its transmission and distribution businesses and communications and information technology solutions to organisations for broadband network connectivity.

VISION & VALUES OF HYDRO ONE

• Hydro One Limited supports the communities they serve in several ways. Creating a positive social impact is integral to its purpose-driven philosophy and sustainability approach.
• Safety training and safe play is a focus in its community partnerships across Ontario and employees donates to charities and volunteer in their communities. They are committed to managing all operations through a risk-based approach that minimises the impact on the environment.
• Hydro One Limited adheres to its value chain to ensure the organisation reaches its goals set to meet the current and future needs of customers and maximises returns, income growth and capital appreciation for shareholders who purchase shares with them.

MARKET PERFORMANCE OF HYDRO ONE

• Hydro One Limited’s shares are traded on the Toronto Stock Exchange (TSX) under the stock symbol H listed in the Utilities sector.

• Highlights of the company’s performance for the three months ended September 2019 include net income attributable to common shareholders of US Dollar 241 million, a 24.2% increase from last year, and EPS of US Dollar 0.40. Financing costs decreased in the third quarter of 2019 compared to the same quarter last year primarily due to recognition of an unrealised loss on the foreign-exchange contract and interest expense related to convertible debentures in the third quarter of 2018.

• The Company made capital investments of US Dollar 424 million during the third quarter and placed US Dollar 433 million worth of new assets in-service. Due to Hydro One Limited’s continued performance on this market shareholders can buy or sell shares with confidence and expect sound dividends and returns in 2019 and further.

Buy HYDRO ONE stocks / shares – A Step by Step Guide how to Buy / Purchase HYDRO ONE Stocks or Shares online.

Before buying any stock or share one has to consider a few factors.

STEP 1: PROPER RESEARCH IS ESSENTIAL

Upon deciding you want to buy HYDRO ONE Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.

Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.

STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN HYDRO ONE STOCKS / SHARES

It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a US Dollar 5 stock, multiply 100 by US Dollar 5 to get US Dollar 500.

STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE

Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.

STEP 4: OPEN A BROKERAGE ACCOUNT

A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.

STEP 5: COMMIT AND PURCHASE HYDRO ONE STOCKS / SHARES

Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out.  Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of HYDRO ONE stocks / shares.

5 Questions to ask yourself before purchasing any stocks or shares.

1. Is it the best time to buy this stock / share?
2. Should I buy HYDRO ONE stocks / shares in the current economic climate?
3. Can I afford to buy this stock / share?
4. What is the forecast of the stock / share growth?
5. What is the current price per earning ration on the stock / share?