Fortis Inc. (TSX:FTS)(NYSE:FTS) is one of those rare companies that gives any investor type a good reason for owning it. For a value, growth, or income perspective, Fortis’ business model is highly conducive to the needs and varying risk appetites of nearly every investor, making this stock long term thesis to buy and hold even more compelling.
From a dividend perspective, Fortis has remained on the top of my lists of quality dividend payers in recent years. This is due primarily to the company’s incredible track record of dividend growth overtime.
For more than four decades, Fortis has not missed a year in which its distribution was not increased. The company also has never cut or suspended its dividend.
This sort of assurance is, in my opinion, key for income oriented and growth investors alike. The risk of dividend cuts is one of the biggest headwinds most dividend paying companies faced today, in my view.
Fortis has consistently yielded around 3.5% to 4% of late, a testament to the market’s belief that dividend stability is in the cards.
Fortis’ regulated revenue streams and extremely defensive business model (if one stops paying for this, they won't have heat in their house) makes for a stock that is relatively easy to easy to value, as a multiple of the company's dividend payouts. I don't expect this to change, making Fortis a top pick for all investors today.
Invest wisely, my friends.
