Should I buy Hydro One stock in 2025?

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At HelloSafe, our expert has been monitoring Hydro One’s performance for over three years. Every month, hundreds of thousands of Canadians rely on us to break down market trends and highlight the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. Consistent with our ethical charter, we have never been, and will never be, compensated by Hydro One.

What is Hydro One?

How much is Hydro One stock?

The price of Hydro One stock is rising this week. As of today, the share price stands at C$53.04, reflecting a 24-hour gain of +C$1.17 (+2.26%) and a strong advance for the week. The company’s market capitalization is C$31.79 billion, with an average 3-month trading volume of 1.09 million shares. Hydro One posts a P/E ratio of 27.48 and offers a dividend yield of 2.37%. With a low beta of 0.33, this stock remains a stable choice, appealing to Canadian investors seeking resilience during market swings.

Our full analysis on Hydro One stock

Following a comprehensive review of Hydro One’s latest financial results and the stock’s performance trajectory over the past three years, our analysis leverages a fusion of proprietary algorithms and multi-sourced data—including sector benchmarks, technical patterns, and peer positioning. The synthesis of robust financial indicators, strengthening technical momentum, and an evolving competitive landscape establishes a compelling analytical framework. So, why might Hydro One stock once again become a strategic entry point into the Canadian utility sector in 2025?

Recent Performance and Market Context

Hydro One (TSX: H) has recently exhibited notable strength on the Toronto Stock Exchange, closing at C$53.04 as of April 30, 2025—a new 52-week high and representing an impressive +2.26% daily gain. Over the past twelve months, shares have advanced from a low of C$38.17, outpacing most North American utility peers and reflecting not just sector resilience, but company-specific momentum.

• Consistently strong quarterly results, including a 5.9% year-over-year revenue growth and a 10.5% rise in net income for Q4 2024.
• Revised upward full-year guidance for EPS growth (6–8% through 2027), demonstrating management’s confidence in Hydro One’s earnings trajectory.
• Completion of key infrastructure projects ahead of schedule, such as the Chatham to Lakeshore Transmission Line, underscoring robust operational execution.

Broader macroeconomic factors paint a constructive backdrop:

• Continued electrification trends in Ontario support steady, long-term demand.
• Defensive appeal of regulated utilities has returned to focus amid episodic market volatility, positioning Hydro One as a haven for risk-averse investors.
• Recent Canadian economic policy emphasizes infrastructure spending—bolstering the outlook for essential services and their capital providers.

Altogether, Hydro One’s recent share price action and sector context suggest the timing may be favorable for investors seeking both growth and defensive characteristics in a single asset.

Technical Analysis

From a technical standpoint, Hydro One is exhibiting pronounced bullish momentum:

• All major moving averages (20-, 50-, 100-, 200-day) are decisively below the current price, a classical signal of an established and strengthening uptrend.
• The RSI (14) stands at 70.92, indicating short-term overbought conditions. While this typically precedes a pullback or consolidation, it is also a hallmark of stocks entering new high territory and can precede further gains in trending markets.
• MACD (12,26,9) at 1.02 confirms positive short- and medium-term momentum, validating the uptrend.
• Support levels at C$51.16, C$50.74, and C$50.39 protect downside risk; these may offer ideal technical entry points should profit-taking emerge.
• Recent breakouts above resistance levels (now at C$51.93, C$52.28, and C$52.70) reinforce the bullish case.

Short to medium term, Hydro One’s technical structure appears favorable for new positioning—particularly for investors willing to engage opportunistically if a modest pullback presents itself.

Fundamental Analysis

Hydro One’s financial fundamentals underpin a narrative of sustainable, high-quality growth:

• Strong revenue expansion: Full-year 2024 revenues rose by 8.2% to C$8.484 billion, outpacing peers in the regulated utilities sector.
• Profitability momentum: Net income expanded 6.5% year-over-year to C$1.156 billion, supporting EPS growth to C$1.93 (from C$1.81 last year).
• Capital discipline: C$3.063 billion invested in 2024, channelled into mission-critical infrastructure and future-proofed grid assets.
• The company’s payout ratio of approximately 65% signals prudent capital allocation, supporting both dividend growth and further reinvestment.

Valuation-wise:

• Hydro One’s current trading price, while above the average analyst consensus, can be justified by its sector leadership, regulated cash flow certainty, and visible multi-year earnings growth.
• Its P/E ratio, in the low 27–28 range, is consistent with defensive premium stocks—a reflection of both scarcity value and future stability.
• Low beta (0.33) signals downside resilience, a key differentiator versus cyclical equities.

Structurally, Hydro One’s commanding market share (serving 1.5 million customers), entrenched brand, and market-leading operational efficiency point to ongoing outperformance relative to its Canadian utility peers.

Volume and Liquidity

Hydro One’s average daily volume of 1.09 million shares over the past three months reflects robust secondary market liquidity, supporting institutional and retail investor confidence.

• Sustained liquidity dampens volatility and ensures ready entry/exit for new positions.
• The share float structure enables dynamic price discovery and valuation support, especially amidst growing demand for defensive, income-generating equities.

This combination of volume consistency and liquidity positions Hydro One as an attractive foundation for both speculative and core portfolio allocations.

Catalysts and Positive Outlook

Several forward-looking catalysts may unlock further upside in 2025 and beyond:

• Infrastructure Expansion: The award of the Wawa to Porcupine Transmission Line and the acquisition of a significant stake in the East-West Tie Transmission Line reinforce Hydro One’s unassailable position at the heart of Ontario’s electrification drive.
• Sustainable Financing: The issuance of C$750 million of medium-term notes under its Sustainable Financing Framework highlights both access to capital markets and growing ESG investor demand.
• Cost Optimization: C$150 million in annual productivity savings strengthens free cash flow and potential future dividend growth.
• Regulatory Alignment: Hydro One’s ability to operate within and adapt to regulatory environments has ensured stable, predictable margins—another catalyst for risk-conscious investors.
• Leadership Renewal: The transition in board leadership, with a focus on continuity and governance, sets the stage for further strategic expansion.
• Macro Trends: As governments accelerate decarbonization policies and investments in electric infrastructure, Hydro One’s unparalleled regional footprint positions it optimally to benefit from structurally favorable trends.

With this confluence of catalysts, the positive outlook for Hydro One is well supported by both operational execution and market context.

Investment Strategies

Taking a deliberate, buy-side perspective, Hydro One presents several compelling strategies across investment horizons:

• Short-term: For those seeking tactical entry, monitoring price action near support levels (C$51.16–C$50.74) could deliver a low-risk entry on any consolidation, given short-term overbought signals.
• Medium-term: Investors may consider accumulating shares ahead of further earnings catalysts and as new infrastructure projects deliver results—a strategy aligning with rising institutional accumulation and continued sector fund inflows.
• Long-term: Given Hydro One’s stable dividend, regulatory certainty, and visible multi-year growth, the stock appears to offer an exemplary core holding for long-term, risk-adjusted returns—especially within income-focused, defensive strategy portfolios.

Consistently, positioning at or near technical lows, or in anticipation of major project announcements or regulatory milestones, could enhance return potential relative to sector peers.

Is it the Right Time to Buy Hydro One?

In summary, Hydro One stands out amidst Canadian utility stocks for its powerful blend of defensive stability, visible growth, and strategic positioning within one of the most attractive regulated markets in North America. Key strengths include:

• Multi-year revenue and earnings growth above sector average,
• Visible pipeline of regulated, rate-based capital investments,
• Predictable, OEB-approved revenue streams,
• Strong balance sheet and liquidity,
• Reliable dividend with scope for further increases.

While analyst consensus targets point to a valuation premium, current market behavior and the company’s fundamentals justify renewed investor interest. The combination of stable cash flows, innovation in sustainable finance, operational outperformance, and robust technical structure all suggest Hydro One could be entering a new bullish phase. As Ontario’s electrification story accelerates, the company’s unrivaled footprint and capital agility make it uniquely positioned to benefit.

For Canadian investors seeking a prudent yet growth-oriented total return opportunity, Hydro One appears to represent an excellent entry point into the essential infrastructure and regulated utility sector—one that warrants serious consideration as part of a diversified, future-ready portfolio.

Every sign points to a company—and a stock—poised for continued leadership and value creation at the heart of Canada’s energy transition.

How to buy Hydro One stock in Canada?

Buying Hydro One (TSX: H) stock online is straightforward, secure, and accessible for Canadian investors through regulated brokerage platforms. You have two main ways to invest: purchasing actual shares (spot buying) or trading contracts for difference (CFDs), which allow you to speculate on stock movements with leverage. Each approach has its own risk and cost profile, giving you flexibility depending on your goals and experience. If you’re considering taking the next step, you’ll find a comparison of the top brokers available to Canadians further down the page.

Spot Buying

Spot buying means purchasing actual Hydro One shares in your name via a regulated broker. This gives you direct ownership, eligibility for dividends (currently C$1.26 per share annually, a 2.37% yield), and voting rights. Fees typically involve a fixed commission per trade, usually around C$5 to C$10 at leading Canadian brokers.

Practical example

If the current Hydro One share price is C$53.04, and you invest C$1,000 (including a typical C$5 brokerage fee), you can buy approximately 18 shares.

Gain scenario

If the share price rises by 10% to C$58.34, your shares are now worth about C$1,100.
Result: +C$100 gross gain, or +10% on your initial investment (excluding dividends and fees).

Trading via CFD

CFD trading enables you to speculate on Hydro One's price movements without owning the underlying shares. CFDs are offered by certain brokers, allowing you to use leverage—amplifying both potential gains and risks. Instead of a flat commission, you typically pay a spread (difference between buy/sell price) and overnight financing fees if you hold leveraged positions for more than a day.

Example with leverage

With C$1,000 and 5x leverage, you control a position size of C$5,000 on Hydro One shares.

Gain scenario

If Hydro One's price rises by 8%, your position generates a return of 8% × 5 = 40%.
Result: +C$400 gain on your C$1,000 investment (excluding spreads or overnight costs). Please note that losses can be amplified as well as gains.

Final Advice

Before investing, it’s essential to compare brokers’ fees, trading platforms, and available features—costs and conditions vary widely. Your best choice depends on your investment objectives: spot buying suits long-term, dividend-oriented investors, while CFD trading appeals to those seeking flexibility or short-term strategies with greater risk tolerance. Consult the broker comparison table further down the page to make an informed decision that fits your needs.

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Our 7 tips for buying Hydro One stock

The latest news about Hydro One

Hydro One’s share price reached a new 52-week high, closing at C$53.04 on April 30, 2025, reflecting strong investor confidence and robust positive momentum.
This upward movement represents a 2.26% daily gain and caps an impressive recent uptrend, fueled by the company’s consistently improving financials and strategic execution in Ontario’s increasingly electrified economy. The price action places Hydro One well above its 20-, 50-, 100-, and 200-day moving averages, further confirming a bullish technical outlook.

Hydro One reported a 10.5% year-over-year increase in net income for Q4 2024, alongside increased revenue and earnings per share.
Net income rose to C$200 million on revenue of C$2.1 billion, with EPS climbing from C$0.30 to C$0.33 over twelve months—consistent with a positive multi-quarter operating trend. This performance validates the effectiveness of recent productivity initiatives, which yielded C$150 million in annual cost savings, supporting bottom-line expansion and underlining Hydro One’s ability to manage costs in a regulated environment.

The company has revised its annual EPS growth guidance upward to 6-8% through 2027, signalling greater management confidence in its growth outlook.
This guidance increase—from a previous 5-7% range—stems from strengthened execution on major infrastructure projects such as the early completion of the Chatham to Lakeshore Transmission Line, new investments in the East-West Tie, and the award of the Wawa to Porcupine line development. These projects are particularly salient for Ontario’s transition toward electrification and grid modernization, reflecting Hydro One’s long-term, province-centric strategic relevance.

Hydro One successfully completed a C$750 million sustainable debt issuance under its Sustainable Financing Framework, further enhancing its capacity for green infrastructure investment.
The new capital secures favorable funding for regulated transmission and distribution asset build-out, supporting both sustainability objectives and future profit growth. This transaction also reinforces Hydro One’s leadership in responsible capital markets activity within the Canadian utility sector, appealing to ESG-focused investors and institutional stakeholders.

A leadership transition with the appointment of Susan Wolburgh Jenah as interim Chair provides governance continuity following Tim Hodgson’s resignation.
Hydro One’s prompt handling of this board-level change demonstrates operational stability at the highest levels, with no disruption to day-to-day management or strategic priorities reported. This continuity is critical, given the company’s essential role in Ontario’s energy infrastructure and the ongoing execution of its major capital programs.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.

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