The market is full of great long-term stocks that can provide a healthy source of income for years to come. Incredibly, finding a magnificent Canadian utility stock is easier than you may think.
Here’s one magnificent Canadian utility stock to consider buying right now.
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Meet your next investment
In case you’re wondering, the magnificent stock to buy and hold forever is Fortis (TSX:FTS). Fortis is a utility stock, and one of the largest on the continent.
Specifically, Fortis has 10 operating regions that provide electric and gas services to over 3.5 million customers across Canada, the U.S., and the Caribbean.
The overwhelming majority of those operations are regulated, meaning that they provide a recurring and stable source of revenue for the company.
That recurring source of revenue is important as it allows Fortis to invest in growth initiatives while also paying out a juicy dividend (more on that in a moment)
Critics of utility stocks often point to the stocks as being boring and without growth. That argument states that utilities lack the funds or the incentive to invest in growth due to their dividends and stable, regulated business model.
When it comes to Fortis, that couldn’t be further from the truth.
The company has invested heavily in growth over the years. This includes both massive acquisitions as well as upgrading existing facilities and transitioning over to renewables.
In fact, Fortis has earmarked a massive capital plan, earmarking billions towards that growth.
Turning to results, Fortis recently announced results for the second fiscal of 2025. In that quarter, Fortis reported earnings of $384 million, or $0.76 per common share.
By way of comparison, in the same period last year, the company posted $331 million, or $0.67 per common share.
As of the time of writing, this magnificent Canadian utility stock trades up 16% year-to-date
Let’s talk about that income
One of the main reasons why Fortis attracts investors and why we can call it a magnificent Canadian utility stock is its dividend.
Fortis pays out a quarterly dividend that, as of the time of writing, provides a steady 3.5% yield. This means that investors starting with even a $5,000 investment in Fortis will earn sufficient income from those dividends to generate several shares through reinvestments.
In other words, Fortis can be a perfect buy-and-hold option for any investor’s portfolio.
But that’s not all – that dividend continues to grow!
Fortis is one of just two companies in Canada that have raised their dividends for 50 consecutive years without fail. This not only earns Fortis the badge of being a Dividend King, but also a serious option for any portfolio.
Will you buy this magnificent Canadian utility stock?
No stock is without risk, and that includes this magnificent Canadian utility stock. Fortunately, Fortis offers plenty of defensive appeal through its stable business model backed by sheer necessity.
The company also offers a juicy dividend with decades of annual increases, while it continues to invest in growth.
In my opinion, Fortis is a magnificent Canadian utility stock that should be a core holding in any well-diversified portfolio.
Buy it, hold it, and watch your portfolio grow.
