Fortis (TSX:FTS) might just be the best Canadian stock no one ever talks about. It doesn’t make headlines, it doesn’t soar 40% in a month, and it rarely lands on “top growth” lists. But guess what, these are all great things. Behind the noise, Fortis is doing what it’s always done: generating reliable cash flow, paying rising dividends, and quietly compounding shareholder wealth decade after decade.
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About Fortis
At its core, Fortis is an essential utility business, a collection of regulated electric and gas utilities spread across Canada, the U.S., and the Caribbean. This means almost all of its revenue is predictable. Around 99% of its earnings come from regulated assets, which provide guaranteed returns approved by regulators. These steady cash flows insulate Fortis from market volatility, recessions, and interest rate swings. When investors panic over tech selloffs or inflation scares, Fortis just keeps humming along, delivering power and collecting stable income.
That stability has turned Fortis into a compounding machine. Over the last 20 years, the dividend stock has grown at roughly 8% to 9% annually when you include dividends. The dividend stock has also increased its dividend for 51 consecutive years, the second-longest streak of any Canadian stock. That puts it firmly in Dividend Knight territory. Its current yield hovers near 3.4%, and management has already pledged to keep raising the payout by about 4% to 6% annually through 2028. For investors reinvesting those dividends, that’s long-term wealth quietly building in the background.
Pay attention
The reason Fortis gets overlooked is simple: it’s boring. It doesn’t chase headlines or flashy tech ventures. Instead, it focuses on execution, modernizing its grid, expanding its renewables, and acquiring regulated utilities in regions with predictable returns. Its $25-billion capital plan through 2028 will expand its rate base by around 6% annually. That alone sets up years of earnings and dividend growth without needing speculative bets.
Another reason Fortis deserves more attention is its geographic diversification. About two-thirds of its assets are in the United States, across states like Arizona, New York, and Michigan. That exposure reduces dependence on any single regulator or economy and gives Fortis natural currency and inflation protection. It’s a quiet hedge against a purely Canadian portfolio, all while remaining eligible for the dividend tax credit.
A solid buy
Financially, Fortis runs a conservative balance sheet, typical of utilities but well-managed even by those standards. It regularly refinances at favourable rates thanks to its stable cash flow. The dividend stock’s business model thrives on predictability with moderate leverage, long-term debt maturities, and regulated cost recovery. While high rates squeezed valuations for utilities, Fortis stock’s consistent growth plan and inflation-linked rate base make it one of the sector’s safer holdings. When rates eventually stabilize or fall, the stock could easily re-rate higher.
The biggest “risk” with Fortis is perception. Because it moves slowly, investors often rotate out of it during growth-driven rallies. But that boredom is its hidden strength. When speculative names crash, Fortis keeps the lights on, literally and figuratively, and keeps paying. Over decades, that kind of stability compounds more than most people realize.
Bottom line
So, yes, Fortis stock is arguably the best Canadian stock no one talks about. It’s a reliable income engine, a stealth compounder, and a dividend stock that rewards patience rather than speculation. In a world obsessed with the next big thing, Fortis reminds investors that quiet consistency often wins the race.
