There’s nothing wrong with having some boring dividend stocks in your portfolio, especially when boring means predictable. For example, electricity and natural gas remain necessities regardless of whether markets are booming or investors are worried about a recession.
Fortis (TSX: FTS) fits that description well because the electricity and natural gas its utilities provide remain essential in good times and bad. That stable demand creates predictable cash flow, supports continued infrastructure investment, and helps the company grow its dividend over time.
In this article, I’ll explain why those qualities make Fortis a Canadian dividend stock I’d gladly hold in any market.
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Why Fortis works in any market
Simply put, Fortis is a St. John’s-based diversified electric and gas utility holding firm with operations across Canada, the United States, and the Cayman Islands. Fortis stock currently trades at $75.59 per share with a 6% year-to-date gain and a market cap of $38.5 billion. At this market price, it also offers a 3.4% annualized dividend yield.
For a dividend stock I’d want to hold in any market, consistent earnings matter far more than short-term movements in its share price. And Fortis’s latest results support that argument.
In the second quarter, the utility giant delivered net profit of $396 million, up about 3% year-over-year (YoY). Its earnings per share also climbed to $0.78 in the latest quarter from $0.76 a year ago. Rate base growth across Fortis’s utilities and higher retail electricity sales at UNS Energy helped drive the improvement.
That said, some factors restricted its earnings growth. Notably, Fortis faced higher costs related to rate base growth that were not yet reflected in customer rates. The timing of operating costs at UNS Energy, a shift in quarterly revenue at Central Hudson, and higher holding company finance costs also weighed on its growth. In addition, the 2025 dispositions of businesses in the Turks and Caicos and Belize and foreign exchange movements affected earnings growth. On the brighter side, Fortis’s net earnings for the first half of 2026 rose 2% YoY to $897 million despite these temporary challenges.
Growth gives its dividend more room
What makes this dependable utility stock even more interesting is the fact that it’s investing heavily to expand its regulated asset base.
Interestingly, Fortis invested about $2.7 billion during the first half of 2026 and remains on track with its $5.6 billion annual capital plan. Its five-year capital plan totals $28.8 billion, highlighting the scale of its planned investments. The company expects these investments to expand its midyear rate base from $42.4 billion in 2025 to $57.9 billion by 2030, reflecting a 7% compound annual growth rate.
On the projects front, Fortis recently completed the 200-megawatt Roadrunner Reserve II battery storage project in Arizona. Meanwhile, British Columbia approved the Tilbury Phase 1B expansion with a cost allowance of up to $2.2 billion.
Most importantly, the company expects continued expansion of its rate base to strengthen earnings and support annual dividend growth of 4% to 6% through 2030. Given its regulated operations, visible capital investments, and dividend growth outlook, Fortis looks like a really attractive Canadian dividend stock to buy right now and hold through different market cycles.
