Among all Canadian blue-chip dividend paying stocks, Fortis Inc. (TSX:FTS)(NYSE:FTS) remains on the top of my list as a core holding for any income portfolio. This stock is a cash flow generating machine, supporting incredible cash flow growth over the years which has fed annual dividend increases for nearly half a century to date.
There is simply no dividend paying company on the TSX today I'd recommend more highly than Fortis. I would encourage long term investors looking for retirement income to seriously consider adding a position on any weakness.
Fortis has, unsurprisingly, held up much better than most of its peers through this weakness in large part due to its stable business model and extremely solid dividend. For those seeking dividend safety, never mind growth, at this point in time, Fortis is a great stock to pick up today.
I expect to see continued dividend growth overtime from Fortis, as I don't see any serious repercussions to the company’s core business model from this pandemic. If you believe, as I do, that folks will continue to heat their homes in the winter and cool their homes in the summer, one will discover how insulated Fortis’ revenue really are.
As long as interest rates remain near zero, bond-like proxies such as Fortis should continue to do well. Dividend growth is simply the icing on top of the cake.
Invest wisely, my friends.
