I’ve harped on the same names now for years, and for good reason. One of the things I value dearly, and many long-term conservative, income-oriented investors do as well, is consistency with respect to dividend distributions, as well as increases to such distributions over time.
In general, companies that build an investor base on the premise of delivering dividends on a regular basis will see their valuation increase generally in correlation to their rate of dividend increases over time (so as to maintain a relatively stable yield).
Fortis Inc. (TXS:FTS)(NYSE:FTS) has continued to be a top pick of mine for dividend investors for years, due in large part to the company’s 46-year history of raising its dividend!
Through thick and thin, Fortis continues to chug along, providing long-term investors with a reason to stay invested and keep the company’s share price stable, even in periods of extreme economic instability. Fortis has forecast dividend increase in the mid to high single digits for the next few years, keeping pace with the company’s historical performance.
From an operations perspective, it appears to be much of the same for the long-term outlook for Fortis in the medium and long-term. Like I mentioned before, even if we do get a recession or some sort of severe economic shock in the near-term,
Fortis is a great, safe way to play the market and obtain income as well. I would recommend adding a position on any short-term weakness in Fortis’ stock price in the near term, or nibbling away at this one over the next while, as it has a long runway for long-term growth.
Invest wisely, my friends.
