One of the best dividend stocks you can own on the TSX is that of utility giant Fortis (TSX:FTS)(NYSE:FTS). The company’s resilient and consistent operations make it a great option for income investors who seek reliable dividend payments. It’s a fairly low-risk stock to own, especially if you’re after a high payout.
Fortis’ dividend yields 4.1%, which is better than what you’ll get with most other stocks, and it’s far higher than the 1.3% yield that the S&P 500 averages. But what makes the stock even more special are its prospects for future dividend growth. Fortis has announced it will be increasing its fourth-quarter dividend by 4.2%, and that will extend its streak of consecutive increases to 51 straight years.
And the company, which also recently announced a $26 billion capital plan for the next five years to grow its operations, anticipates that it will be able to continue to grow its dividend by between 4% and 6% through to 2029. And odds are, given how consistent the company’s operations are, there could be even more dividend growth beyond that.
Between its stability, its high yield, rising payouts, and its continued growth, Fortis makes for one of the best Canadian dividend stocks to own, particularly if you’re looking for an investment to put into your Tax-Free Savings Account. Fortis is the type of stock you can buy and forget about as the utility company has a broad and diverse customer base, and there’s a lot of predictability in its earnings.