Finding a dividend stock that you can trust to grow on its own for a decade is a hefty ask. Fortunately, the market has more than a few great candidates that can meet that trust goal. If you pick the right Canadian dividend stock, it can also provide a tasty dividend along the way.
Here’s a look at one Canadian dividend stock that is an all-time favourite for investors. Even better, it’s an option to invest in now and forget about it safely for a decade or more.
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You need a defensive stock that you can trust
When picking the right Canadian dividend stock to hold for a decade, more than a few factors can resonate. Some of those are consistency, resilience, and growth.
One stock that checks off all those boxes (and more) is Fortis (TSX: FTS).
Fortis is a utility stock. In fact, Fortis is one of the largest utility stocks in North America. The company boasts a large portfolio of 10 operating regions spanning 5 provinces, 10 U.S. states and 3 Caribbean countries.
In total, the company provides necessary electric and gas services to 3.4 million customers across those markets. That utility service is bound by long-term regulated contracts that often span decades in duration.
Those contracts provide Fortis with a reliable and recurring revenue stream. That revenue, in turn, allows Fortis to invest in growth initiatives and pay out a handsome dividend.
When it comes to growth, Fortis has taken an aggressive approach. This differs from the stereotype of utility stocks as slow-moving no-growth behemoths.
Specifically, Fortis actively and frequently invests in new acquisitions and growth initiatives. The company has a massive $25 billion capital expenditure plan running through 2029.
That plan is focused on grid modernization, clean energy transition, and infrastructure upgrades. The fund also supports a targeted 4–6% annual dividend growth through 2028 (more on that in a moment).
More importantly, prospective investors considering Fortis should note that, unlike consumer retail, utility bills are necessities which cannot be traded down to more frugal options during downturns.
That defensive shield from market volatility, combined with solid growth investments, makes Fortis one of the best defensive moats and dependable stocks for investors to consider in Canada.
That long-term trust builds with a reliable income
Apart from that defensive appeal, one of the main reasons why investors continue to flock to Fortis is for the company’s quarterly dividend.
As of the time of writing, that dividend works out to a respectable 3.6%. That’s a solid yield that is well-covered, defensive, and growing.
When it comes to dividend growth, Fortis excels. It is one of just two companies in Canada with an incredible streak of over 50 consecutive annual increases. The latest update was the 52nd in succession. The 4.1% bump was announced just last week.
The predictable nature of that dividend, coupled with the established history of increases, makes this the Canadian dividend stock for any portfolio.
Fortis: The Canadian dividend stock every portfolio needs
Fortis isn’t flashy or high growth. It’s a mature, well-established company that churns out a defensive quarterly dividend.
Fortis offers unmatched dividend consistency, a defensive business model, and a clear growth roadmap.
In short, Fortis is the Canadian dividend stock to deliver income for the next decade and beyond.
