Fortis Inc. (FTS): A Bull Case Theory 

We came across a bullish thesis on Fortis Inc. on Beat the TSX (BTSX-20)’s Substack by Beat the TSX-27 Strategy. In this article, we will summarize the bulls’ thesis on FTS. Fortis Inc.’s share was trading at $51.70 as of December 2nd. FTS’s trailing and forward P/E were 21.69 and 20.28 respectively according to Yahoo Finance.

Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. FTS continues to deliver on its long-standing reputation for stable returns, predictable dividends, and disciplined growth. In Q3 2025, the company reported adjusted EPS of $0.87, modestly beating last year’s $0.85, driven by rate base growth and a regulatory catch-up at Central Hudson. The centerpiece of the quarter was Fortis’s 5-year capital plan, which increased 11% to $28.8 billion, focused entirely on regulated assets, predominantly within U.S. transmission utility ITC.

This level of visibility into future investments, combined with potential upside from 8GW+ of incremental data center load, underscores Fortis’s appeal to income-oriented investors seeking steady, long-term growth. The company also increased its quarterly dividend by 4.1%, marking 52 consecutive years of dividend growth, reinforcing its status as a dividend king. Importantly, Fortis’s capital structure remains strong, with no new equity required, and leverage stable, fully funding its growth plan while maintaining optionality through DRIP and ATM programs.

The combination of predictable rate base growth, disciplined capital deployment, and potential incremental demand from AI-driven electricity consumption positions the company for continued stability and compounding returns. While the stock currently yields 3.56%, slightly below its 5-year average of 3.81%, the shares are viewed as a long-term hold, offering reliable income and limited downside.

Fortis exemplifies the value of regulated cash flows, delivering steady results in a volatile market. For investors prioritizing yield, stability, and disciplined execution, the company remains a core holding in the BTSX-27 portfolio, with additional buying considered only if valuations provide a more attractive entry point.

Previously we covered a bullish thesis on Evergy, Inc. (EVRG) by Hidden Market Gems in April 2025, which highlighted the company’s defensive positioning, high yield, and low volatility amid macro uncertainty. The company’s stock price has appreciated approximately 14.36% since our coverage, as the thesis played out. The thesis still stands as EVRG remains resilient. Beat the TSX-27 Strategy shares a similar perspective but emphasizes Fortis’s capital plan, dividend growth, and regulated asset investments.

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Disclosure: None.