PROMO:
Fortis (TSX:FTS)(NYSE:FTS) is a St. John’s-based utility holding company. Shares of this dividend stock have climbed 6.7% in 2022 as of early afternoon trading on April 11. The stock is up 17% in the year-over-year period.
Utility stocks proved to be a very reliable hold in the face of the COVID-19 pandemic. Moreover, Fortis and its peers have also provided dependable income as fixed income assets have been squeezed by historically low interest rates. The Bank of Canada (BoC) is set to pursue another 50-basis point increase this week. That should not scare you away from Fortis.
This company unveiled its final 2021 earnings on February 11, 2022. It posted adjusted net earnings of $1.21 billion or $2.59 per common share in 2021 – up from $1.19 billion or $2.57 per common share in the previous year. Fortis has continued to increase its capital expenditures to kick off this new decade.
Fortis brought its five-year capital plan for 2022 through 2026 to $20.0 billion. It has also committed to green energy investment by committing $3.6 billion to cleaner energy infrastructure.
The company aims to grow its rate base from $31.1 billion in 2021 to a whopping $41.6 billion by 2026. This would represent a CAGR of about 6% over the forecast period. Moreover, it is aiming for annual dividend-growth of 6% through 2025. Fortis has already achieved 47 consecutive years of dividend increases. It currently offers a quarterly dividend of $0.535 per share. That represents a 3.3% yield.
