Canadian investors have plenty of great investments to choose from on the market. Some can offer higher returns but expose investors to greater risk. For those investors seeking the safest income play on the TSX, there is another option.
A better option is to invest in reliable businesses that provide essential services to customers. By extension, those investments often come with dividends that can continue growing over time.
When it comes to picking the safest play on the TSX, there’s one name that comes to mind before others. That investment is Fortis (TSX: FTS), and here’s why this stock belongs in your portfolio.
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Fortis is built around regulated utilities
For those unfamiliar with the stock, Fortis is one of the largest regulated electric and natural gas utility stocks in North America. The company has multiple operational regions across the U.S., Canada, and the Caribbean. Collectively, Fortis serves about 3.5 million customers across those regions.
Customers depend on having reliable electric and gas service. That service is also something that can’t just be traded down or reduced like non-essential retail.
This gives Fortis a unique defensive moat that persists regardless of how the economy fares. By extension, this means that Fortis generates a predictable revenue stream that allows the company to invest in growth initiatives and pay a handsome dividend (more on that in a moment).
And because Fortis operates in multiple markets, that defensive appeal broadens further. Specifically, Fortis isn’t dependent on a single market, regulator, or economy.
While that doesn’t remove risk from the table entirely, the regulated model does set up Fortis as one of the safest income plays on the market.
Let’s talk about that dividend
One of the main reasons why investors continue to invest in Fortis is for that quarterly dividend. As of the time of writing, Fortis offers a 3.35% yield. That’s not the highest yield on the market, but for what Fortis lacks in yield, it makes up for it in consistency and growth.
Part of the reason for this is that Fortis has the second-longest dividend growth streak on the market. That streak currently sits at 52 consecutive years of increases. This means that throughout recessions, market crashes, periods of high inflation, and interest rate cycles, Fortis continued to increase its dividend.
And thanks to the company’s predictable revenue stream, Fortis is able to forecast dividend growth to continue that streak. The company is currently targeting annual dividend growth of between 4% and 6% through 2030.
This lets prospective investors collect a growing dividend and compound their returns by reinvesting it over time.
A massive capital plan supports the next chapter
Fortis’ impressive dividend growth requires the underlying business to continue growing as well. Fortis has a capital plan that calls for a $28.8 billion investment across its utility portfolio between 2026 and 2030. Much of that spending will go toward transmission, distribution, and regulated infrastructure.
The plan is expected to support compound annual rate-base growth of nearly 7%. A larger rate base allows utilities to earn returns on additional infrastructure. This creates a path towards that additional dividend growth.
Fortis is already putting that plan into action. The company invested $2.7 billion during the first half of 2026 and remains on track with its $5.6 billion capital plan allocation for the year.
Why Fortis could be the safest income play
Fortis isn’t going to provide the highest yield or have double-digit growth.
Instead, Fortis offers a combination few income stocks can match. The company provides essential services, generates regulated earnings, operates across multiple jurisdictions, and has increased its dividend for more than five decades.
Fortis also has a capital plan that gives it a runway toward further growth.
Put all that together, and Fortis comes out as one of the safest income plays on the market.
