FTS.TO
🇨🇦TSXCanadian UtilitiesFortis Inc.
Last reviewed: May 15, 2026Deep review
CA$156.33
-CA$2.5700 (-1.64%)Sample
Mkt cap: C$38.94B
5-year price history
1D
1W
1M
6M
1Y
5Y
Bull case
- Fortis unveiled a record CA$28.8B five-year capital plan (2026–2030) in February 2026, implying 7% annualized rate base growth from CA$42.4B to CA$57.9B by 2030, and reaffirmed 4–6% annual dividend growth guidance — extending a remarkable 52-consecutive-year dividend increase track record.
- 2025 adjusted EPS of CA$3.53 rose ~7.6% excluding FX, with ~79% of the capital plan being low-risk, rate-base-driven spending across regulated North American utilities funded primarily by operating cash flow and regulated utility debt.
- Operating across 10 North American utilities with ~60% of rate base in the U.S., Fortis gives Canadian investors built-in USD exposure and inflation-linked rate base growth, while diversified regulatory jurisdictions reduce single-regulator concentration risk.
Bear case
- Total debt of ~CA$33.8B, net debt/EBITDA of ~6.0x, and interest coverage of only 2.4x EBIT mean the CA$28.8B capital plan requires sustained debt issuance — higher-for-longer rates raise refinancing costs and increase new project financing expenses.
- Levered free cash flow is negative at ~CA$2.32B over the trailing twelve months — Fortis is entirely dependent on regulatory rate increases and capital markets access to fund dividends and capex, and an adverse rate case in Arizona or New York could slow dividend growth below the 4–6% guidance range.
- A significant portion of earnings comes from U.S. utilities, making CAD-reported results vulnerable to a stronger Canadian dollar — CAD appreciation against USD directly reduces the reported value of U.S. earnings and can slow dividend growth even when underlying utility operations perform as expected.
Why a Canadian investor might own this
Fortis is as close to a guaranteed dividend grower as Canadian investors can find. Fifty years of consecutive increases through recessions, rate cycles, and energy transitions. The yield isn't the highest, but the certainty is: you can model dividend growth forward with more confidence than almost any other TSX stock. Ideal for TFSA income compounding where certainty matters more than maximum yield.
Account fit
| Account | Fit | Why |
|---|---|---|
| TFSA | Ideal | 50-year dividend growth streak plus eligible dividend tax treatment plus tax-free compounding — the trifecta for a core TFSA income holding. |
| RRSP | Ideal | Tax-deferred compounding of a reliably growing eligible dividend. Lower volatility than most equity holdings. |
| FHSA | Good | Low volatility and predictable income make this suitable for an FHSA regardless of time horizon. |
| Non-reg | Good | Eligible dividend credit applies. The growing payout means the yield on cost in a non-reg account improves annually. |
Ideal = best tax outcome · Avoid = material drag or ineligible · Color and symbol, not color alone, indicate fit.
Every Sunday
The Brief. Every Sunday.
One featured Canadian stock. One tax or account tip. One TSX market note. Clear, direct, done in under 10 minutes. Free.
- • One featured Canadian stock with a full thesis
- • A tax or account tip — TFSA, RRSP, eligible dividends
- • TSX market context in one sentence
- • Unsubscribe in one click. No filler.
By subscribing you agree to our privacy policy. Educational only — not investment advice.