Stock Analysis

What Fortis (TSX:FTS)'s Dividend Affirmation and Earnings Growth Mean For Shareholders

TSX:FTS
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  • Fortis Inc. recently reported its second quarter and half-year results, showing growth in both sales and net income compared to the same periods last year, and announced the next round of dividends for common and preferred shareholders, with payments due on September 1, 2025.
  • This financial update underscores Fortis' ongoing ability to generate consistent earnings while maintaining a regular dividend payout, which highlights the company's emphasis on shareholder returns.
  • We'll assess how Fortis' year-over-year earnings growth and dividend affirmation fit within its capital investment and revenue growth plans.

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Fortis Investment Narrative Recap

Fortis shareholders generally look for steady earnings growth, reliable dividends, and a focus on regulated utility investments. The latest quarterly results, which showed upticks in both sales and net income year over year, reinforce the company’s profile as a stable income provider. However, these positive results do not meaningfully alter the fact that regulatory hurdles in Arizona remain a short-term catalyst and the main risk to timely capital recovery; the impact of this earnings update on that risk appears minimal.

Among Fortis’ recent announcements, the Board’s affirmation of the CAD 0.615 per share common dividend stands out. This regular dividend reiteration continues to support investor confidence in Fortis’ commitment to returns, especially as the company pursues its multi-year capital investment plan and faces ongoing regulatory processes in key growth regions.

Yet, while the dividend outlook appears consistent, investors should remember that regulatory delays, especially in Arizona, could still affect earnings and cash flow if...

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

Fortis' outlook anticipates CA$13.3 billion in revenue and CA$2.0 billion in earnings by 2028. This scenario requires 4.4% annual revenue growth and a CA$0.4 billion increase in earnings from the current CA$1.6 billion.

Uncover how Fortis' forecasts yield a CA$66.76 fair value, a 3% downside to its current price.

Exploring Other Perspectives

TSX:FTS Community Fair Values as at Aug 2025
TSX:FTS Community Fair Values as at Aug 2025

Three members of the Simply Wall St Community assigned fair values ranging widely from CA$58.05 to CA$301.86 per share. While most see strong earnings growth, regulatory risks in Arizona may weigh on future results and highlight why opinions vary so much, see how your view compares.

Explore 3 other fair value estimates on Fortis - why the stock might be worth 16% less than the current price!

Build Your Own Fortis Narrative

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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.

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About TSX:FTS

Fortis

Operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries.

Good value with proven track record and pays a dividend.

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