A Canadian Dividend Stock I’d Hold Through Anything

This Canadian utility stock may suit investors who value patience over market drama.

| More on:
Key Points
  • Reliable income often starts with businesses that keep serving essential needs.
  • Fortis (TSX:FTS) has a 3.2% dividend yield and a $28.8 billion five-year capital plan.
  • The company expects its rate base to grow to $57.9 billion by 2030.

Some of the best dividend stocks on the TSX do not typically depend on investor enthusiasm to make their business work. Fortis (TSX: FTS) is a good example. Its value is not linked to product hype, a sudden economic boom, or a market narrative that needs constant defending.

Instead, it owns regulated utility assets that serve real communities, generate recurring cash flow, and support long-term infrastructure investment. That structure gives Foolish investors visibility that many growth stocks cannot offer with the same confidence. More importantly, Fortis can plan years ahead because its customers continue to need electricity and natural gas in almost every economic environment. For an income investor, that predictability is worth more than a higher yield attached to a shakier business.

In this article, let’s look at some other key reasons why Fortis remains a top dividend stock worth holding when markets are calm, and especially when they are not.

The sun sets behind a power source

Source: Getty Images

A utility with real staying power

Recently, FTS stock closed at $80.55 on June 23, 2026, with a market cap of about $41 billion. Its shares have climbed 23% over the past year. And at this market price, Fortis offers a dividend yield of 3.2%, paid quarterly.

Simply put, Fortis owns regulated utilities, including ITC, UNS Energy, Central Hudson, FortisBC Energy, FortisAlberta, and other electric utilities. The regulated nature of those businesses makes its earnings and cash flow more predictable than those of other cyclical companies.

That predictability does not mean earnings move in a straight line. Weather, rate decisions, capital timing, and currency swings could all affect quarterly results. But the underlying demand for its regulated utility services tends to be resilient, which helps Fortis maintain consistency.

Growth without abandoning safety

In the first quarter of 2026, the company posted net earnings of $501 million. It also invested $1.4 billion in capital projects during the quarter and remained on track with its $5.6 billion annual capital plan.

But what makes Fortis more than a bond-like utility is its long runway for rate-based growth. The company’s $28.8 billion five-year capital plan is expected to lift its midyear rate base from $42.4 billion in 2025 to $57.9 billion by 2030. That simply means a 7% compound annual growth rate. That growth could support its dividend-growth guidance of 4% to 6% annually through 2030.

Meanwhile, Fortis is also investing in grid resiliency, climate adaptation, electric transmission, and infrastructure tied to rising power demand. Its projects, such as the Big Cedar Load Expansion and the Tilbury Liquefied Natural Gas (LNG) Storage Expansion, show how the company is preparing itself for long-term utility needs.

Foolish bottom line

Fortis is the kind of stock investors buy when they want an essential-service business that could keep compounding quietly while paying a dependable dividend. For long-term investors, that matters because such businesses maintain defensive cash flow, visible growth, and a dividend backed by regulated assets.

While it may not deliver the explosive gains that some fast-growing technology or artificial intelligence (AI) stocks could during bull markets, Fortis offers something many investors value even more: consistency.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Income and growth financial chart
Dividend Stocks

Got $10,000 Sitting in Your TFSA? I’d Make This Move Before the Next Rally

Letting $10,000 sit in a TFSA feels safe, but it can quietly lose buying power if it stays uninvested.

Read more »

the word REIT is an acronym for real estate investment trust
Dividend Stocks

This Industrial REIT Could Be a Quiet Growth Engine

Learn how Granite REIT utilizes a strategic approach to enhance portfolio growth through its diverse industrial properties.

Read more »

woman gazes forward out window to future
Dividend Stocks

The 5 Canadian Stocks So Safe I’d Tell My Mother to Buy Them

These five Canadian stocks combine durable businesses, strong competitive positions, and long-term resilience for cautious investors.

Read more »

man looks surprised at investment growth
Dividend Stocks

These 2 Canadian Dividend Stocks Are Screaming Buys, and I’m Taking The Bait

With reliable business models, stable cash flows, consistent dividends, and healthy growth prospects, these two dividend stocks offer compelling buying…

Read more »

Group of people network together with connected devices
Dividend Stocks

Enbridge Names New CEO Michele Harradence: What Investors Need to Know

Enbridge’s upcoming CEO transition puts Michele Harradence in charge of a company with a $41 billion growth backlog, diversified energy…

Read more »

Man meditating in lotus position outdoor on patio
Dividend Stocks

2 TSX Dividend Stocks Perfect for Patient Investors

With resilient business models, consistent dividend growth, and compelling long-term prospects, these two dividend stocks offer an attractive opportunity for…

Read more »

Canada Day fireworks over two Adirondack chairs on the wooden dock in Ontario, Canada
Dividend Stocks

Is Enbridge Stock Still a Buy With CEO Greg Ebel Retiring?

Enbridge CEO Greg Ebel is retiring and Michele Harradence takes over in 2027. Here is what the leadership change means…

Read more »

ETF is short for exchange traded fund, a popular investment choice for Canadians
Dividend Stocks

The Canadian Energy ETF to Own as Oil Prices Surge

The iShares S&P/TSX Capped Energy ETF (TSX:XEG) lets you buy Canadian energy stocks in a diversified package.

Read more »