
TSE:FTS
This summary was created by AI, based on 8 opinions in the last 12 months.
Fortis Inc. (FTS-T) is regarded as one of North America's largest regulated gas and electric utilities, recognized for its reliable performance and stable dividend, currently yielding around 2.3% to 3.5%. The company reported strong Q4 earnings, with revenue up 11% year-over-year, and plans to spend $26 billion through 2029 to boost its rate base by approximately 6.5% annually. While opinions on its growth potential vary, many experts like its strong cash flow visibility and effective capital expenditure strategy. However, some analysts suggest that its valuation seems steep, trading around an 18-22x forward P/E ratio, prompting a cautious approach for new investments until prices decline. Fortis remains an attractive long-term hold for dividend-seeking investors, but potential buyers may want to wait for a more opportune entry point below $70.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It has recently announced its intentions to move towards more renewables over time. A company that has solid history and 5i would bet that this transition is a success. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company recently announced a commitment to moving into renewable energy. Greener companies get higher valuations and so lower cost of capital. Unlock Premium - Try 5i Free
For a retirement portfolio. Something like a Fortis gives you a stable yield for a retirement portfolio. Could also do a barbell approach, with some PPL and some Fortis, or another high-quality Canadian utility, to limit the volatility.