If you only have room for one utility in your portfolio, it is hard to argue against Fortis (TSX: FTS).
The company just reported its second quarter 2026 results, and the numbers back up what long-term shareholders already know. Fortis is one of the steadiest Canadian dividend stocks on the TSX, and its growth pipeline is getting bigger.
Fortis owns nine regulated electric and gas utilities across Canada, the United States, and the Caribbean. Roughly 9,900 employees serve about 3.5 million electricity and natural gas customers.
Notably, 95% of its assets sit in transmission and distribution, the low-risk part of the utility business. The company operates in 16 jurisdictions and is entirely regulated, making cash flows stable and predictable.
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A Canadian dividend stock with 52 years of hikes
Fortis has raised its dividend every year for 52 consecutive years, a streak few companies can match. Management has targeted annual dividend growth of between 4% and 6% through 2030, backed by a $28.8 billion capital spending plan.
CEO David Hutchens made the point directly on the company’s Q2 earnings call, stating:
We have demonstrated that we can grow our dividend responsibly, having increased it for the past 52 consecutive years while maintaining a disciplined approach to balance sheet strength.
In Q2, Fortis reported net earnings of $396 million or $0.78 per share, up from $0.76 per share in the year-ago period. On a year-to-date basis, earnings reached $897 million, or $1.76 per share.
Growth at its ITC transmission business and warmer weather driving electricity sales at its UNS Energy utility helped offset higher financing costs.
What separates Fortis from a riskier growth stock is that capital spending is primarily tied to rate base growth. Management expects average annual rate base growth of 7% through 2030, and the company has already invested $2.7 billion of its 2026 capital plan through June, keeping it on pace for $5.6 billion in spending this year.
Expansion ahead
FortisBC recently received an Order in Council from the British Columbia government approving a larger Phase 1B expansion of its Tilbury LNG facility, opening the door to roughly $2 billion of regulated investment.
Only about $350 million of that is currently in the five-year plan, which indicates that the rest could be new upside once the next capital plan is released alongside third-quarter results.
At Tucson Electric Power, management is negotiating with a data centre customer for as much as 600 megawatts at one site and up to 700 megawatts at a second. If those deals close, Fortis estimates it would need another US$1.5 billion to US$2 billion of new generation investment.
Meanwhile, ITC’s transmission business in the U.S. Midwest expects US$3.3 billion to US$3.8 billion of investment beyond 2030 tied to projects it has already been awarded.
Fortis kept its A-minus issuer credit rating from S&P and its BBB-plus rating from Fitch during the quarter, both with stable outlooks, which tells you the growth plan is not straining the balance sheet.
The Foolish takeaway
Fortis is not a stock that will double overnight. Instead, it is a regulated, diversified utility with a nearly unmatched dividend record and a growing pipeline.
For income-focused investors building a core Canadian portfolio, Fortis is among the top dividend stocks on the TSX.
