A dividend king is a stock that has delivered at least 50 consecutive years of dividend growth. As of today, the S&P/TSX Composite Index does not boast any equities that fit this bill. However, one TSX stock is on track to claiming its crown by the middle of the decade. This is a stock that Canadians can trust for the long haul.
Fortis (TSX:FTS)(NYSE:FTS) is a St. John’s-based utility holding company. Shares of this dividend stock have climbed 12% in 2021 as of late afternoon trading on September 22. The stock is up 10% in the year-over-year period.
The company released its second quarter 2021 results on July 29. It reported net earnings of $608 million for the first six months of 2021 – up from $586 million in the prior year. Meanwhile, adjusted net earnings jumped $46 million year-over-year to $619 million or $1.32 per share. Fortis has proven very resilient in the face of the COVID-19 pandemic.
Fortis bolstered its five-year capital plan in 2021. This plan is expected to raise its rate base from $30.5 billion in 2020 to $40.3 billion by 2025. Moreover, it expects that this will support annual dividend growth of 6% through 2024.
This dividend stock last paid out a quarterly distribution of $0.505 per share. That represents a 3.4% yield. Its shares possess a solid price-to-earnings ratio of 22. Fortis is a future dividend king that is well worth holding for the long term.
