As with many things which are uncertain in life, looking for a solid track record of performance before investing one’s hard earned money into a company has proven to be a decent place to start for investors interested in immediate capital repayment.
Dividend investing has proven to be a lucrative long-term investing philosophy, and while not ultimately as profitable as investing in high-powered growth names focused on delivering high returns on equity and assets, the thrill and satisfaction of receiving a monthly or quarterly dividend check can often outweigh these losses over time.
Canada has a number of dividend stocks with long histories of returning massive amounts of capital to shareholders – one company I have liked for a long time is the utility company Fortis Inc. (TSX:FTS)(NYSE:FTS).
Fortis has delivered dividends which have grown each and every year for over four decades. This growth rate has allowed the company to maintain a relatively high dividend yield (today hovering around 4%), without compromising earnings and allowing for future growth via acquisition and organic expansion.
The selloff companies like Fortis have experienced in recent months has hit the firm’s valuation, increasing the company’s yield, but has largely ignored the excellent long-term fundamentals underlying Fortis’ rather large payout.
For investors less concerned about short-term gyrations of the market, looking to take advantage of (what I expect to be) a short-lived dip in an otherwise impeccable long-term growth arc, Fortis is one of the best utilities out there to gain exposure, and generate dividend income, at this point in time.
Invest wisely, my friends.
