Dividend stocks are reliable investments to generate steady income in any market condition. That said, dividends are never guaranteed, which makes it important to invest in companies capable of maintaining and growing their payouts over time. Investors should focus on TSX stocks with a long history of consistent dividend payments and regular increases, as these reflect a strong commitment to rewarding shareholders.
The most dependable dividend stocks are backed by blue-chip companies with resilient business models, stable earnings, and healthy cash flows. They remain financially robust enough to keep paying and increasing their dividends even during periods of economic uncertainty.
With that in mind, here’s one Canadian dividend stock that stands out as a compelling investment to hold in any market condition. Supported by a durable business and an impressive track record of dividend growth, this company appears well-positioned to deliver reliable, growing income to shareholders in any market environment.
Image source: Getty Images
A top Canadian dividend stock to hold in any market condition
Among the best dividend payers on the TSX, Fortis (TSX:FTS) stands out as a dependable long-term investment to hold in any market condition.
Fortis operates regulated electricity and natural gas transmission and distribution networks across North America. Because its business is regulated, the utility company generates stable, predictable cash flows largely insulated from commodity price swings and economic uncertainty. Its growing and predictable cash flow allows Fortis to continue rewarding shareholders with higher distributions.
The resilience of Fortis’s dividend is reflected in its solid payout history. Fortis has increased its annual dividend for 52 consecutive years, making it one of Canada’s most reliable dividend-growth stocks. It currently distributes 0.64 per share, yielding 3.2%.
Fortis to extend its dividend growth streak
Fortis appears highly capable of sustaining its long-standing record of dividend increases, supported by the stability of its regulated utility operations and growing rate base. The utility company’s planned $28.8 billion capital program through 2030 will likely increase its average rate base at a 7% compound annual growth rate (CAGR) to $57.9 billion.
As its regulated asset base expands, Fortis’s earnings will grow, enabling it to increase its dividend by 4% to 6% annually through 2030. Beyond its current capital plan, the company also has several additional growth opportunities that could strengthen its long-term outlook.
One key opportunity is expanding U.S. electric transmission infrastructure to meet rising electricity demand and connect new renewable energy projects. Fortis is also investing in grid modernization, while growing its renewable natural gas and LNG infrastructure in British Columbia. Across its service territories, the company continues to invest in projects that improve system reliability and support increasing electricity demand.
Looking further ahead, Fortis is well-positioned to benefit from several long-term trends reshaping the utility industry. The growing adoption of electric vehicles, the rapid expansion of data centres, and rising electricity consumption across residential, commercial, and industrial markets are expected to drive sustained demand for regulated utility infrastructure.
With a diversified portfolio of regulated assets, predictable cash flows, and a conservative financial strategy, Fortis is well-positioned to continue rewarding shareholders with consistent dividend growth.
The bottom line
Fortis is a dependable dividend stock, backed by decades of consistent dividend payments and steady increases. The company also appears on solid financial footing to continue growing its dividend over time.
That said, it’s important not to let any single stock dominate your portfolio. A diversified mix of high-quality dividend stocks can help reduce risk, provide a more stable stream of income, and improve your chances of achieving stronger long-term returns.
