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.

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

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.

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