TSE:FTS

Fortis Inc. (FTS.TO)

78.74
+0.93 (1.20%)
as of Jun 10, 2026, 4:04:02 pm Market Open.
1463 watching
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Investor Insights
star iconJun 10, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

Fortis Inc. (FTS-T) is recognized as one of the largest regulated gas and electric utilities in North America, with a solid reputation for reliability and long-term income generation. The company's Q4 earnings surpassed expectations by approximately 6%, with a notable year-on-year revenue increase of 11%. Fortis is embarking on an ambitious $26 billion capital plan through 2029, aiming for a compounding growth rate base of 6.5%. Its dividend yield of around 3.5% has consistently seen annual growth, making it a credible option for income-focused investors. However, some experts view it more as a bond proxy with limited growth potential, favoring alternative investments with better diversification or growth prospects.

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Consensus
Hold
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Valuation
Fair Value
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BIP.UN
PARTIAL SELL

All infrastructure stocks have long-life assets. FTS has grown its dividend. Emera is slightly cheaper, but you don't need to switch over. One of his top picks will outperform Fortis. Expect just a little growth from Fortis this year. Take some profits at current all-time highs.

DON'T BUY
It's probably topped out by getting up to its fair market value so there's not much place to go. He is using the opportunity to switch into things that are more promising.
BUY

How Many Stocks does he Recommend Holding in the Utility Sector. Stocks in isolation miss the point. It depends on what utilities you are buying. He has almost a 20% weighting in utilities. He has FTS-T with huge diversification, yet has NPI-T which is a power producer around the world as well as domestic, although mostly off-shore wind. He owns 4 or 5 stocks.

TOP PICK
The company has said it will increase the dividend annually by 6% until 2024. A regulated, stable business with steady cash flows that will supprot the dividend growth. Yield 3.6% (Analysts’ price target is $55.73)
DON'T BUY
Looks to be rolling over. He wouldn’t be looking at utility stocks right now. There was an upward trend line that broke. If interest rates go up, fortis won’t do well. He would wait a couple more months before even looking to ré-entre.
TOP PICK
Well-diversified across North America. $13 billion capital program will sustain a 6-7% growth rate and the dividend. Utilities are a good place to be in a cautious environment. The stock price is still good. They will focus on organic growth and their existing assets. (Analysts’ price target is $55.73)
BUY
He thinks AQN-T will probably be a hold better. He lightened up on FTS-T. He may still lighten up on the FTS-T position further. AQN-T has some other drivers to it. He thinks it will test its new high. You could buy it here today.
TOP PICK
Has long owned this. It's pulled back given this rotation out of defensive names lately. It pays a 3.7% yield. Cash flow is stable due to revenues coming from regulated assets. They're focused on organic growth, with a backlog of projects all regulated. They will grow their dividend 6% annually through 2024. (Analysts’ price target is $56.29)
BUY
Steady eddy, good dividend. Great company, very well managed, high quality dividend. Standalone utility. Good value, but an income generating tool. If you want a bit more growth, there are other names, but they aren't pure utilities.
BUY

Fortis just came out with good earnings. It is expensive at 19x. Algonquin is growing earnings per share at 15% with a lower multiple. He prefers AQN.

PAST TOP PICK
(A Top Pick Oct 24/18, Up 33%) Good dividend yield, defensive business, mid-single digit level of growth. When the market gives you a gift, sometimes you need to lock it in. Valuation is now stretched, because though stock price has appreciated, earnings have not kept pace.
PAST TOP PICK
(A Top Pick Mar 22/19, Up 13%) He still holds it but is starting to evaluate whether he should pair back.
BUY ON WEAKNESS
He has done extremely well on it over the last number of years. In the last quarter they were behind expectations but it is just weather related. They are diversified. They have positioned themselves so a lot of operations are in the US now. He thinks he will see future dividend increases coming out of this company. Take a long term view.
PARTIAL SELL
It's done very well this year. But as an interest-sensitive stock, they've all fed off a massive decline of bond yields. He will sell a bit of this. The dividend isn't high enough for him.
COMMENT

Sell 25% of his telecoms and utilities like Fortis, and buy REITs? It's a good plan to diversify. Summit REIT is good. The utilities like Emera, Fortis and NPI-T are great stocks to own now--they're regulated, earnings growth backed in and the multiples are reasonable. They still have upside, and so do the REITs.

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