The stock market can be an unpredictable rollercoaster, especially when economic indicators flash warning signs. Whether you're worried about a downturn, want some dividend income, or just a solid investment you can buy and forget about, utility giant Fortis (TSX:FTS)(NYSE:FTS) stands out as one of the most reliable options available today.
Fortis operates nine regulated utility businesses across Canada, the United States, and the Caribbean. This 100% regulated business model is the bedrock of its stability. Because people need electricity and natural gas regardless of the economic climate, the company enjoys highly predictable cash flows.
This predictability translates directly into consistent shareholder returns. Fortis boasts an incredible track record of 52 consecutive years of dividend increases, placing it among the most elite dividend-paying companies in North America. The company currently offers an attractive dividend yield of 3.3%. Even better, management has provided guidance for 4% to 6% annual dividend growth through 2030, supported by a massive $28.8 billion capital investment plan.
Despite operating as a traditionally slow-moving utility, the stock has performed exceptionally well recently, climbing approximately 10% this year as investors actively rotate their money into safer, defensive assets to protect their principal.
For those worried about a potential recession, Fortis provides the ultimate peace of mind. By combining a defensive, low-risk business model with a steadily growing, dependable payout, this stock offers a powerful mix of capital preservation and income generation. It is an excellent anchor for any long-term investor navigating an uncertain economic landscape, particularly those building out portfolios.
