1 Future Canadian Dividend King to Buy Now

A dividend king is a stock that has delivered at least 50 consecutive years of dividend growth. As it stands today, there are no dividend kings on the S&P/TSX Composite Index. Meanwhile, markets in the United States boast dividend kings like ABM Industries, Emerson Electric, Hormel Foods, and others.

Fortis (TSX:FTS)(NYSE:FTS) is a St. John’s, Nfld.-based utility holding company that is on track to become the first dividend king on the TSX. Shares of this dividend stock have climbed 7.5% in 2021 as of close on November 24. The stock is up 6.4% from the prior year.

The company unveiled its third quarter 2021 results on October 29. Adjusted net earnings were reported at $300 million or $0.64 per share – down marginally from $302 million or $0.65 per diluted share in the previous year.

Meanwhile, adjusted earnings in the first nine months of 2021 rose to $919 million or $1.96 per share compared to $875 million or $1.88 per share in the year-to-date period in 2020.

Fortis went on to announce a $20 billion capital plan that will extend from 2022 through 2026. It aims to support rate growth of 6% over this period. In turn, this will enable Fortis to deliver annual dividend growth of 6% through 2025.

This year, Fortis announced a quarterly dividend of $0.535 per share. That represents a 3.8% yield. The company has delivered 47 consecutive years of dividend growth. If all goes as planned, Fortis will snag its dividend crown by the middle of this decade.