A Canadian Dividend Stock I’d Hold Through Anything

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

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.

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