If I had to pick one stock to buy in my Tax Free Savings Account (TFSA) and never touch again, it would be Fortis (TSX: FTS).
Valued at a market cap of $39 billion, Fortis is among the largest utility companies in Canada. In the last 10 years, the TSX stock has returned 176% to shareholders after adjusting for dividends. Despite its inflation-beating returns, the Canadian dividend stock offers you a yield of 3.4% in June 2026.
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Own this TSX dividend stock in the TFSA
Most people invest in a TFSA hoping for big, fast gains. The smarter play is often the opposite. You want to own a stock that keeps paying you year after year while steadily increasing dividends.
Fortis fits that brief:
- The company runs nine regulated electric and gas utilities across Canada, the United States, and the Caribbean.
- Roughly 95% of its assets are tied to the transmission of electricity and natural gas through poles, wires, and pipelines. Basically, Fortis operates in a recession-resistant sector, making it a top buy in 2026.
- As Fortis is 100% regulated across 16 jurisdictions, its earnings potential is largely set by regulators.
A 52-year dividend streak
What makes Fortis special is that the growth engine is still running.
At its 2026 annual meeting on May 7, management laid out a $28.8 billion capital plan, which is $2.8 billion larger than the prior plan.
Chief Financial Officer Jocelyn Perry told shareholders the plan should lift the rate base by about $16 billion through 2030, supporting a roughly 7% average annual rate base growth.
Basically, the rate base is the pile of approved assets on which a utility earns a regulated return. When it grows, earnings and dividends tend to follow.
Fortis earned $1.7 billion in 2025, or $3.40 per share, while adjusted earnings rose 5% to $3.53 per share. The board then raised the dividend for the 52nd year in a row, lifting payments to $2.49 per share, up 4% from 2024.
Management is now targeting 4% to 6% dividend growth every year through 2030. It shows that the growth story for Fortis is far from over.
Fortis yields about 3.4% today, with the stock near $78. Inside a TFSA, every one of those dividend payments lands in your account tax-free.
Now picture that 4%-6% annual dividend growth, reinvested year after year, with zero tax liability. That is how a slow mover quietly turns into a serious wealth builder over decades.
Bay Street forecasts Fortis to increase its adjusted earnings per share from $3.53 in 2025 to $4.71 in 2030. Comparatively, dividends are forecast to expand from $2.49 per share to $3.21 per share in this period.
Investors should note that every investment carries certain risks. Utility companies carry significant debt on their balance sheet and are impacted by interest rate hikes.
However, few Canadian businesses offer a mix of predictable income, steady growth, and a 52-year streak of dividend hikes.
If you are building a TFSA you never plan to touch, Fortis is the one stock I would be comfortable holding forever.
