Summer Sale
50% off Premium Yearly
Opinions Ryan Bushell
Fortis Inc.FTS.TOPARTIAL BUYJan 10, 2024
Ryan BushellStock price when the opinion was issued
As of Jun 19, 2026. Market Open.
You might be interested:
Pays a 4.1% yield. They've increased that dividend the past 50 years, which is key. They recently announced their forecast of rate growth of 5-6% for the next 5 years, and dividend growth of 4-6%. A slow, steady grower. Was hit last year by rising rates, but should benefit from declining rates this year.
They've done very well in the U.S. Have been great acquirers which should continue, as should dividend increases.
Michael Sprung
FTS is a stable utility company, with a good market cap of $27B, a decent forward P/E of 17.2X, and a strong yield of 4.3%. Most utility stocks sold off over the past few months due to fears of 'higher-for-longer' and elevated interest rates, however, we believe that this presents a good buying opportunity in utility stocks as expectations for rates can change rapidly, and its yield of 4.3% can become suddenly attractive.
Unlock Premium - Try 5i Free
Group as a whole has pulled back because of rising interest rates. With interest rates stabilizing in the past month, stocks are catching up. Good sector for income. Her core utility name, well positioned in US and Canada. Dividend growth profile is very visible.
Christine Poole
It is a core income stock and has increased its dividend every year for 50 years. It has stable cash flow with a 4 1/2% yield.
Christine PooleLikes their US expansion and their debt management. Well-run. Good to buy at these levels. All utilities have been hurt by high interest rates, but they will stabilize.
Paul Harris, CFA50 years of dividend increase (longest in Canada). Current share price presenting lots of buying opportunity. ~4% yield + 3-5% dividend growth going forward. Owns shares in the company. Excellent long term pick.
Ryan Bushell
Core income stock. Time to build a position. Reaffirmed annual dividend growth of 4-6% until 2028. Investment-grade balance sheet. More than 50% of revenues are from US. Reasonable payout ratio. Yield is 4.3%, and grows every year.
(Analysts’ price target is $57.95)Christine PooleRegulated utilities have held up better than the renewables. Predictable, stable earnings growth and dividend growth. Doesn't often misstep on capital allocation. Consistently comes in line on earnings and on growth.
James TelfserBoring utility company that is out of favor.
Interest rate sensitive which has weighed on share price.
Good time to purchase shares.
4.25% yield very sustainable.
Expecting growth in dividend & share price.
99% of assets are regulated - good for steady revenues.
Decarbonization will increase demand for electricity.
Christine Poole
5 decades of straight dividend increases every year. You won't find a more sustainable dividend. Yield of 4.2% is lower, so not a ton of income, but sustainable and growing. Core position for him. Hopes it'll be around forever; it gets dark every night, people need to turn the lights on. High payout ratio, but not uncommon for utilities, and payout ratio on cashflow is very conservative.
He likes to buy below $50. But sometimes you just have to hold your nose and buy it. For new clients, he buys half, waits 6-12 months for a dip. If none appears, he goes ahead and buys the rest, because you want to at least get on the train for those dividends, rather than waiting forever for the right price and it never comes around.