1 Ultra-Reliable Canadian Dividend Stock to Buy and Hold Through 2030

Canada’s push to double grid capacity could make boring utilities a surprisingly big long-term dividend opportunity.

Key Points
  • Canada’s grid buildout and data-centre demand make electricity a long-term growth trend, not just a basic service.
  • Fortis grows by investing in regulated utility infrastructure, with its rate base expected to rise about 7% yearly.
  • It has raised dividends for 52 straight years and targets 4% to 6% annual dividend growth through 2030.

If there’s one number Canadian dividend investors cannot afford to ignore, it’s this one: $15 billion.

That’s how much Canada’s National Electricity Strategy could deliver in total energy savings by 2050, according to the Prime Minister’s Office. The same plan aims to double the capacity of Canada’s grid by 2050 and lower total energy costs for 7 in 10 Canadian households.

So while investors often chase the next fast-moving growth stock, one of the biggest long-term opportunities may be hiding in something much simpler: electricity.

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Source: Getty Images

Powering your portfolio

The Canada Energy Regulator also sees power demand becoming a bigger story. In its 2026 long-term outlook, the regulator said data centre load growth is one of the key assumptions affecting future electricity demand. In its higher scenario, data centre growth alone makes up about a quarter, or 100 terawatt-hours, of projected end-use electricity demand growth.

Reliable electricity is no longer just about keeping the lights on. It’s about artificial intelligence (AI), electrification, industrial growth, housing, manufacturing, and grid resilience. For dividend investors, a reliable dividend stock should not only have a long history of payouts. It should also have a business model tied to a need that will still matter 5, 10, and 20 years from now.

Utilities fit that description better than almost any other sector. Regulated utilities are not usually exciting businesses, and that’s a great reason to love them. These invest in electricity and gas infrastructure, then earn regulated returns on those assets. When the rate base grows, earnings and dividends can often grow with it, as long as regulators approve fair customer rates and the company manages its debt well.

That brings us to Fortis (TSX: FTS).

FTS

Fortis stock is one of the most reliable dividend stocks in Canada. The company operates nine regulated electric and gas utilities across Canada, the United States, and the Caribbean. Its 9,900 employees serve 3.5 million electricity and natural gas customers.

That scale gives Fortis stock exactly the kind of foundation long-term dividend investors should want. People can delay a vacation, skip a new car, or put off a renovation. They cannot stop needing electricity and heat.

Recent movement comes from Fortis stock’s capital plan. The company has a $28.8 billion five-year capital plan for 2026 through 2030. Fortis stock expects that plan to increase its midyear rate base from $42.4 billion in 2025 to $57.9 billion by 2030. That works out to a 7% compound annual growth rate.

Income and growth

That rate base growth also supports the dividend. Fortis stock says it expects long-term rate base growth to support annual dividend growth guidance of 4% to 6% through 2030. For income investors, the dividend history is the real headline. Fortis stock has increased its common share dividend for 52 consecutive years. In the first quarter of 2026, it paid a dividend of $0.64 per common share, up 4.1% from $0.62 in the same quarter last year and currently yielding 3.1% at writing.

Recent earnings were steady, too. Fortis stock reported first-quarter 2026 net earnings of $501 million, or $0.99 per common share. The company also said its $5.6 billion annual capital plan remained on track.

There are risks, of course. Fortis stock carries significant debt, like most utilities, so higher interest rates can pressure borrowing costs and valuation. Regulatory decisions can also affect returns, and major infrastructure projects can face delays or cost overruns. But those risks are easier to accept when the business is tied to essential service, regulated assets, and a capital plan that runs directly through 2030.

Bottom line

For investors looking for one ultra-reliable Canadian dividend stock to buy and hold, Fortis stock still deserves that label. The stock may not double overnight, but as Canada’s electricity needs keep rising, Fortis stock gives investors a simple way to collect growing income from one of the most durable trends of the decade.

Fool contributor Amy Legate-Wolfe 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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