For investors who rely on steady, predictable income, North American utility giant Fortis (TSX:FTS)(NYSE:FTS) just delivered another major milestone. The company recently released its third-quarter financial results and announced a 4% increase to its fourth-quarter common share dividend. This hike extends its impressive dividend growth streak to 53 consecutive years, making it one of the most reliable income stocks in Canada.
The Board of Directors declared a fourth-quarter dividend of 66.5 cents per common share, up from the previous rate of 64 cents. On an annualized basis, investors will now collect $2.66 per share. Based on a recent share price of around $84, that translates to a solid yield of approximately 3.2%. The new payout will be distributed on December 1 to shareholders of record on November 17.
What makes this utility stock particularly attractive is its long-term visibility. Alongside the recent hike, management extended its dividend guidance, confidently projecting 4% to 6% annual dividend growth all the way through 2031. This reliability is supported by a massive new $32.2 billion five-year capital spending plan that will expand its infrastructure and drive steady profit growth. Fortis’s third-quarter earnings showed solid momentum, with net earnings reaching $474 million, or 92 cents per share.
For conservative investors, the stock offers a clear, regulated pipeline of consistent income. Shares are up around 17% this year, and have gained over 50% over the past five years. Whether you want to collect a reliable dividend or just want a stable investment to hold for the long haul, this utility giant could make for an excellent option for your portfolio.
