Utilities stocks offer investors the opportunity to buy into companies with a wide economic moat and reliable dividend payments. In the modern era utility stocks have replaced other fixed income plays for the reliability and steady performance.
Fortis Inc (TSX:FTS)(NYSE:FTS) boasts a dividend-growth streak of 43 years and counting. Shares of Fortis have increased 8.5% in 2017 and it was up 0.47% at the top of the noon hour on October 2. Fortis Inc released its second quarter results on July 28 and net earnings saw a huge jumped to $257 million or $0.62 per share compared to $107 million or $0.38 per share in Q2 2016. The stock offers a dividend of $0.40 per share representing a dividend yield of 3.5%.
Shares of Canadian Utilities Limited (TSX:CU) were down 0.36% at the top of the noon hour on October 2 and have increased 6.7% in 2017. Canadian Utilities possesses the longest dividend-growth streak on the S&P/TSX Index of 45 years and counting. The company released its second quarter results on July 27. Adjusted earnings were down to $129 million compared to $131 million in Q2 2016. Canadian Utilities stock offers a dividend of $0.36 per share representing a dividend yield of 3.7%.
Both utility stock give investors the opportunity to own two of Canada’s top companies that have reported dividend-growth for almost half a century. In terms of stability of income there are few dividend stocks that can compete with these two.