When it comes to investing, mindset matters more than most people realize. Owning the right stocks is important, but having confidence in what you own is just as critical. That’s why Fortis (TSX:FTS) is one of the best and most popular stocks that Canadian investors can buy for the long haul.
If you’re constantly second-guessing your positions or panicking every time the market gets volatile, even the best stocks won’t help you build long-term wealth.
That’s why reliable, boring businesses often end up being some of the best long-term investments you can make. When you find a well-established business that has robust operations and a long track record of profitability, you can be confident holding it through any economic environment.
That’s why consistency is so important; it’s what really drives compounding over time. And that’s why Fortis is one of the best stocks to buy and hold for the long haul.
Fortis is never going to double overnight. It won’t even come close to doubling in value over the course of a year. However, it’s incredibly consistent, reliable, and dependable. And in the current environment, that matters more than ever.
So, if you’ve got your eye on Fortis and have been thinking about pulling the trigger, here are three reasons to buy Fortis stock like there’s no tomorrow.
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Fortis is the perfect stock for ongoing uncertainty
Even though markets have recovered in many areas and inflation has declined, uncertainty hasn’t disappeared. Economic growth is uneven, interest rate expectations continue to shift, and geopolitical risks remain elevated. Therefore, when it comes to these uncertain environments, reliability becomes incredibly valuable.
Fortis is one of the safest and lowest volatility stocks in Canada. Its regulated utility operations generate predictable cash flow regardless of what the economy is doing. People still need electricity and gas, no matter how the economy is performing.
That stability is why Fortis consistently holds up better than most stocks during market downturns. Not only do investors know how reliable it is, but the stock also has a beta of just 0.4, making it one of the least volatile stocks on the TSX.
Fortis still trades at a reasonable valuation
Fortis is not a bargain basement stock, but it’s still reasonably priced given the reliability it offers in this environment.
Right now, Fortis trades at roughly 20.5 times its forward earnings, which is slightly higher than its five-year average of 19.1 times. However, considering it generates highly predictable and stable cash flow, has a long and clear runway of growth, and a dividend growth streak that’s lasted for more than half a century, the valuation is still fair.
Furthermore, it’s also important to remember that utility stocks like Fortis tend to benefit as interest rates move lower. So, if you’ve had your eye on Fortis and have been waiting to pull the trigger, considering its potential to keep rallying through 2026, it’s a stock you’ll want to buy now.
Dividend growth matters more than yield
Although some other utility stocks offer higher dividends than Fortis’s current yield of 3.6%, yield alone isn’t what builds long-term wealth. Consistent dividend growth is far more important.
And not only does Fortis have one of the longest dividend growth streaks in Canada, but it has already laid out plans to continue growing its dividend by 4% to 6% annually through at least 2029.
That level of predictability is just another reason why Fortis is one of the most reliable stocks you can buy.
It’s also why it’s not surprising that over the last decade, Fortis has earned investors a total return of 171%. And if you go back 20 years, that total return rises to 517%, all driven by its reliability and consistency.
So, if you’ve had your eye on Fortis or you’re simply looking to shore up your portfolio in this environment, there’s no question it’s one of the best and safest stocks Canadian investors can buy right now.
