Is Fortis' (TSX:FTS) Dividend Track Record the Core of Its Long-Term Income Appeal?

• In recent coverage, Fortis was highlighted for its more than five-decade track record of steadily increasing dividends, drawing the attention of long-term income-focused investors.
• This recognition emphasized the company’s suitability for generating inflation-protected passive income, particularly in tax-advantaged accounts like the TFSA for Canadian investors.
• We’ll explore how Fortis’s reputation for reliable dividend growth underscores its investment narrative and future income potential for shareholders.

This technology could replace computers: discover 28 stocks that are working to make quantum computing a reality.

Fortis Investment Narrative Recap

Shareholders in Fortis must believe in the enduring value of regulated utility assets and the company's ability to deliver steady, inflation-protected dividend growth. The recent recognition of its dividend track record is positive for sentiment, but it does not materially affect the most important short-term catalyst: North American electricity demand growth. However, the risk of regulatory lag and policy pushback, especially in Alberta and Arizona, remains a crucial consideration.

Among the company’s recent announcements, the reaffirmation of its 4% to 6% annual dividend growth target through 2029 (November 2024) stands out as directly relevant. This guidance reinforces the long-term income narrative highlighted in recent coverage and signals continued management focus on predictable returns, which supports confidence in the business amid ongoing capital investments and evolving policy frameworks.

Yet, in contrast to the income stability, investors should be conscious of how regulatory delays and policy changes could...

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

Fortis is projected to reach CA$13.8 billion in revenue and CA$2.1 billion in earnings by 2028. This outlook is based on an assumed annual revenue growth rate of 5.2% and represents a CA$0.4 billion increase in earnings from the current CA$1.7 billion.

Uncover how Fortis' forecasts yield a CA$68.75 fair value, in line with its current price.

Exploring Other Perspectives

Fair value estimates from four Simply Wall St Community members range from CA$58.05 to CA$292.79 per share. While opinions diverge widely, regulatory uncertainties continue to shape Fortis’s outlook and are worth weighing alongside these varied perspectives.

Explore 4 other fair value estimates on Fortis - why the stock might be worth 17% less than the current price!

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 3 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.

Searching For A Fresh Perspective?

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

• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• 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.
• Find companies with promising cash flow potential yet trading below their fair value.

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