What Makes Fortis Inc. (FTS) a Core Holding for Canadian Income Investors?

Fortis Inc. (NYSE:FTS) is included among the 11 Best Canadian Dividend Stocks to Buy Now.

The company manages a varied mix of regulated utility businesses that generate steady cash flow no matter the state of the economy. In addition, the company primarily focuses on energy delivery, with 93% of its assets invested in transmission and distribution. These segments carry low risk and consistently produce reliable earnings and cash flow.

In its recent quarterly earnings, Fortis Inc. (NYSE:FTS) expressed its continued commitment to providing customers with affordable and reliable energy, despite ongoing macroeconomic volatility. It also reaffirmed its goal of delivering annual dividend growth in the range of 4% to 6% through 2029 for its shareholders.

Fortis Inc. (NYSE:FTS) currently offers a quarterly dividend of C$0.615 per share for a dividend yield of 3.80%, as of July 15. The company has been rewarding shareholders with growing dividends for the past 51 years. The company has outlined a five-year capital plan worth $26.0 billion, which is projected to raise its midyear rate base from $39.0 billion in 2024 to $53.0 billion by 2029. This growth reflects a compound annual rate of 6.5% over the five-year period.

While we acknowledge the potential of FTS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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