How Fortis’ Higher Q1 Dividends And Larger Capital Plan At Fortis (TSX:FTS) Has Changed Its Investment Story

• In early December 2025, Fortis Inc.’s board declared Q1 2026 dividends of CA$0.64 per common share and varying amounts on seven series of preferred shares, all payable on March 1, 2026 to shareholders of record as of February 17, 2026.
• These dividend declarations build on Fortis’s 52-year streak of annual dividend increases and an expanded CA$28.80 billion capital plan focused on regulated assets, underscoring its emphasis on stable, income-backed growth.
• Against this backdrop of sustained dividend growth and a larger regulated capital plan, we’ll now assess how these developments reshape Fortis’s investment narrative.

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

Fortis Investment Narrative Recap

To own Fortis, you generally need to believe in the appeal of regulated utility earnings, steady but modest growth, and a long dividend track record. In the near term, the key catalyst remains execution on its CA$28.80 billion capital plan, while the biggest risk is that regulatory or interest rate pressures constrain returns on that spend. The latest Q1 2026 dividend declaration does not materially change either the short term upside or that core risk profile.

The most directly connected development is Fortis’s recent CA$0.64 per share dividend increase in Q4 2025, which extended its 52 year streak of annual dividend growth. Together with the reiterated CA$0.64 dividend for Q1 2026, this underlines management’s focus on consistent income even as the company leans into large, regulated capital projects that rely on continued regulatory support and funding at manageable borrowing costs.

Yet beneath this history of rising dividends, investors should be aware that sustained high capital spending and rising interest costs could eventually...

Read the full narrative on Fortis (it's free!)

Fortis' narrative projects CA$13.8 billion revenue and CA$2.1 billion earnings by 2028. This requires 5.2% yearly revenue growth and about a CA$0.4 billion earnings increase from CA$1.7 billion today.

Uncover how Fortis' forecasts yield a CA$73.10 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community value Fortis between CA$11.72 and CA$73.10, showing how far apart individual views can be. When you set those opinions against Fortis’s heavy, rate regulated capital program, it becomes even more important to weigh how regulatory decisions and funding costs might influence future outcomes.

Explore 6 other fair value estimates on Fortis - why the stock might be worth as much as CA$73.10!

Build Your Own Fortis Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Fortis research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Fortis research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fortis' overall financial health at a glance.

Seeking Other Investments?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• Find companies with promising cash flow potential yet trading below their fair value.
• Explore 27 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.
• We've found 13 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com