Will Fortis’ (TSX:FTS) Record CA$28.8B Plan and Dividend Hike Shift Its Growth Narrative?

• Fortis Inc. recently announced its largest-ever five-year capital plan of CA$28.8 billion and raised its quarterly dividend by 4.1% to CA$0.64 per share, with the dividend growth rate extended to 4%–6% annually through 2030.
• This continued commitment to capital investment and decades-long record of dividend increases highlights Fortis’s long-term approach to utility growth and reliability for income-focused investors.
• We'll explore how Fortis’s expanded capital plan and renewed dividend growth guidance may further strengthen its investment narrative.

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Fortis Investment Narrative Recap

To be a Fortis shareholder, you need to believe in the company's ability to deliver steady, regulated utility cash flows and consistent dividend growth, even as it faces shifting regulatory policies and a need for continued capital investment. The recent announcement of a record CA$28.8 billion capital plan and 4.1% dividend hike further support its long-term approach, but these moves do not materially change the short-term risk that rising long-term interest rates could pressure earnings and balance sheet strength. Among recent events, Fortis's Q3 2025 earnings showed higher sales year-over-year, but net income in the quarter dipped slightly despite progress over the nine-month period. This earnings momentum, alongside the expanded capital plan, reinforces the company's immediate catalyst: above-average asset and rate base growth from North American electrification and grid modernization, assuming regulatory support remains intact. In contrast, investors should be aware that mounting regulatory lag, especially in key jurisdictions, could suddenly...

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

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

Uncover how Fortis' forecasts yield a CA$69.47 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community range between CA$58.05 and CA$78.81 per share. While perspectives differ, upcoming policy shifts and regulatory changes remain crucial to watch for Fortis's future performance.

Explore 4 other fair value estimates on Fortis - why the stock might be worth 19% 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.

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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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