Grab This Dividend-Growth Monster for 2019

The S&P/TSX Composite Index rose 385 points on December 27. The rally coincided with the largest increase the Dow Jones Industrial Average experienced in its history on December 26.

However, the TSX has still dropped 12% in 2018 so far.

Investors should expect volatility to continue to rear its head as we look to 2019. Growth in Canada is projected to sink below 2% in 2019 and global growth is also under pressure.

Fortis (TSX:FTS)(NYSE:FTS) is a fantastic option for investors looking for long-term stability and income. Shares of the St. John’s-based utility have increased 6.9% over the past three months. The stock is still down 2.6% in 2018 so far.

However, things are looking up for utilities in 2019.

Rising interest rates have put pressure on utilities, telecoms, and other stocks that were perceived as solid income vehicles in an environment of historically low rates.

Rising bond yields have hurt the value of these steady, income-yielding equities, but anemic growth and a turbulent stock market is giving central bankers pause on future rate hikes. The U.S. Federal Reserve and the Bank of Canada have both hinted at a dovish turn in 2019.

Fortis last paid out a quarterly dividend of $0.45 per share, which represents a solid 3.8% yield. The company has delivered dividend-growth for 44 consecutive years. Fortis plans to post 6% annual dividend-growth through 2023.

Its capital expenditure plan is slated to reach $17.3 billion over the next four years and is projected to increase its rate base from $26.1 billion in 2018 to $35.5 billion in 2023.