TSE:FTS
Fortis Inc. (FTS-T)
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Apr 16, 2025, 12:00 amThis summary was created by AI, based on 21 opinions in the last 12 months.
Fortis Inc. (FTS) is widely regarded as a solid and reliable utility stock, characterized by its consistent dividend payments and stable cash flow generation. With a history of 51 consecutive years of dividend increases, FTS appeals to income-focused investors. However, analysts highlight the stock's relatively slow growth potential, particularly in the context of rising interest rates that are impacting the utility sector. Despite a recent positive momentum and a notable 28% price increase over the past year, there are concerns about its ability to sustain such growth. The target prices and recommendations among analysts are largely aligned, suggesting a cautious but favorable outlook for long-term investors, especially in a fluctuating interest rate environment.
Great company. Has raised dividend forever, but dividend growth is slow at only 3-4% a year. Fine for the dividend. But for dividend and growth he'd lean toward a large-cap resource producer generating tons of cash, which would give much better inflation protection. Or go with a bank (such as JPM or a Canadian bank).
Everybody's been crowding into what's been working. Bond proxy, not too challenged by Trump tariffs. Great long-term compounder. Raises dividend every year, by ~5%. Good long-term growth. Q4 beat. Steady player, without all the ups and downs.
One knock is that it's only growing 5%, but trading at 17x. So, no, don't buy at this level. In the space it's time to look at AQN again (believe it or not), GEI, or ALA.
Analysts tend to be conservative. It is a pretty solid, high-paying job, and they do not get much benefit from 'sticking their neck out' versus the crowd. Target prices and recommendations tend to be similar. They do not get fired if 'everyone else was also wrong' but if they are an outlier then their calls are more closely scrutinized. AT 19X earnings FTS still looks OK to us, and its positive momentum in a bad market we think is a strong sign as well. But, it is up 28% in a year, and we would not expect those types of returns on a regular basis. It is still a relatively slow-growth utility company.
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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.
Premium contentFortis currently pays 4.09% and will raise that by 4.2%. The dark days of interest rate hikes are over, and the expected cuts are certainly working in Fortis' favour. A favourite of Stockchaser Trevor Rose and much of Bay Street, Fortis trades at 18.88x PE which is below its median average of 19.77x. This despite shares rallying 5.5% over the past three months.
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.
(Analysts’ price target is $59.96)
Fortis Inc.(FTS-T) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 9
Neutral - Hold Signals / Votes : 2
Bearish - Sell Signals / Votes : 5
Total Signals / Votes : 16
Fortis Inc.(FTS-T) Frequently Asked Questions
What is Fortis Inc. stock symbol?
Fortis Inc. is a Canadian stock, trading under the symbol FTS-T on the Toronto Stock Exchange (FTS-CT). It is usually referred to as TSX:FTS or FTS-T
Is Fortis Inc. a buy or a sell?
In the last year, 16 stock analysts published opinions about FTS-T. 9 analysts recommended to BUY the stock. 5 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Fortis Inc..
Is Fortis Inc. a good investment or a top pick?
Fortis Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Fortis Inc..
Why is Fortis Inc. stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Fortis Inc. worth watching?
16 stock analysts on Stockchase covered Fortis Inc. In the last year. It is a trending stock that is worth watching.
What is Fortis Inc. stock price?
On 2025-07-02, Fortis Inc. (FTS-T) stock closed at a price of $63.96.
Good long-term hold for income. Regulated natural gas and electric utility. Over 1/2 of revenues come from the US. Diversified. Very defensible and visible cashflow stream because it's regulated. Increased dividend for 51 consecutive years. In regions where data centres are being built. Yield is 3.81%.
(Analysts’ price target is $67.50)