Canadian utility company Fortis Inc. (TSX:FTS)(NYSE:FTS) has been a company I have touted for quite some time for investors to check out as a core dividend holding. In this article, I’m going to discuss why my thesis hasn’t changed, and why I think this stock still represents excellent value at these levels.
The company’s stock price has held up quite well through the pandemic compared to most other comparable companies due in large part to the credence investors have given to Fortis’ stable and recurring cash flows. A lot of this has to do with the overall business Fortis is in – providing necessary goods to consumers that have no option but to pay to heat their houses is good business in all times.
Fortis’ dividend yield which is just shy of 4% has also held up incredibly well, and while some investors may now be kicking themselves for not loading up during the dip the pandemic provided, this yield is still very healthy, and growing.
One of the key drivers of my bullish thesis on Fortis has been the company’s dedication to consistently raising its dividend for decades. This is one of those rare companies that chooses to increase its distribution to shareholders no matter what ever year, so the compounding effect really comes into play with a purchase of Fortis at any point in time. Right now, Fortis continues to be attractive and I’d encourage income-oriented investors to check out this stock.
Invest wisely, my friends.