Fortis Inc. (FTS-T)

One of his go-to names in the space.

Is tied to interest rates. Long rates have rebounded lately. A very well-managed company with 51 straight years of raising their dividend. It will remain a core position.

Benefits from recent interest rate cuts, but note that long-term rates are actually rising and this will limit dividend stocks like this. Why? Concerns of inflation returning, or signs of a strong economy coming, but also there could be a debt-maturing wall coming. There's $300 trillion of debt around the world. Fortis pays a 4% dividend, but doesn't grow much. So, considering interest rates ahead, he may exit this at the end of 2025.

It is true that lower rates should otherwise be a tailwind for businesses with leveraged balance sheets. In fact, FTS has recovered meaningfully to reach 52-week highs recently. We think for a conservative name like FTS its performance is quite good. The upside potential from the interest rate tailwinds may not be as attractive as it used to be, but we think FTS is still a high-quality dividend payer. We think FTS can do well from here for shareholders with a potential total return of around 10% annualized return over the long-term. 
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Mostly electricity distribution. Successful cashflow generation. Core income name. Utilities in US are a big part of its profile. Data centre demand is a growth opportunity, but will take many years. Yield is 3.5%, dividend increases every year.

It is down now because of interest rates. It is one to buy when rates move up. He owns it but it is a good time to trim and take some profits.

A core income stock. Highly defensible with strong cash flows. Half their business is in the US. A $25 billion capital spending plan allows them to raise the dividend 4-6% annually through 2028. Benefits from data centre builds. A long-term hold.

Take a look at ZWU, broadly diversified, higher yield than individual names. He'd much rather have exposure to that, better profile for income seekers. 

Both TRP and FTS have rallied significantly, so it's not favourable from a risk/return standpoint. He buys into corrections and weakness instead.

He hears that more AI use needs more energy and therefore more energy from utilities, but heard this noise in 2020 that higher internet use would drive utility demand. He doesn't totally buy into that, but he likes Fortis' dividend in a market where interest rates continue to decline. Dividend stocks will continue to rally. Likes this long term.

It is not a steeply trending stock but is one of the best managed in Canada. He is buying for clients for a long term hold. The dividend and dividend growth are both in the 4 to 6% range over time.

For income seekers, retirees. Very defensive. Trades 19x PE usually, but is now 16x. Have a diverse business in Canada. Not a screaming grower like all utilities, but offers reasonable growth, more than other utilities, and it pays a 4.5% dividend.

She's buying here. You always want to allocate some part of your portfolio to a defensive stock like this. Not the highest yield, but attractive, under 4%; increases it annually by about 5%. Longer term, has outperformed TSX. Holding for any AI play is way down the road.

It is the second largest diversified utility in Canada and is better than other utilities. Since it is a bit cheaper it is OK to buy now. She likes the diversification.

Transmission and distribution of electricity. About 99% of cashflows are regulated, which makes it steady-eddy, boring, and that's why he likes it. Over 50 years of dividend increases. Regionally diversified. Solid dividend.