Fortis Inc. (FTS-T)

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.

Regulated 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.

Boring 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.

The sector is fairly interest-rate sensitive, so it's sold off. One of his preferences in the sector, and it all has to do with a good growth outlook. 

A choppy stock. Utilities react negatively to rising interest rates. These stocks act sort of like bonds. FTS has held in the $50s and could move in the next while. You could own this for the dividend. It won't make you a fortune, but will hold its own.

Very defensive with 99% of their revenues from regulated business, half from the U.S. An income stock she has owned many years. Good to buy on this current pullback. Should appreciate 8% + pays 4% dividend that they have raised for 49 straight years. They don't need equity funding to fund future growth.

There is a lot to like. Q1 was good and it raised estimates. It has good visible growth but is expensive at 18X earnings. There are others which are more exciting on a price to growth basis. Utilities in general or energy infrastructure companies in Canada are pretty good. Two sweet spots are Alta Gas and Keyera.

FTS trades at 21.44x, currently higher than its five-year average of 19.28x, but lower than 24.5x a year ago. The beta is a super-low 0.16, and it pays a 3.80% dividend yield based on a 78% payout ratio. FTS has met or beat three of its last four quarters, and next reports on May 3. Definitely watch that report. Read Canadian dividend payers for our full analysis.

A core holding. Have raised their income the last 49 years. 99% of cash flow is regulated. Yields 3.9%. Continues to like it. Shares are down because of rising rates. In a slowing economy, you need defensive dividend stocks.

FTS has raised its dividend every year of the past 50+.
It does have a lot of debt, but it is in a regulated industry, with consistent and stable cash flow, regardless of economic conditions.
We cannot guarantee future increases, but we can say  it is a dividend we would have little concern on.  
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