For investors new to investing and seeking steady income, dividend-paying companies can be an attractive option. However, as dividends are not guaranteed, new investors should look beyond a stock’s headline yield and assess whether the underlying business has the financial strength to sustain and grow its distributions over the long term.
For those new to investing, TSX stocks with a proven record of paying dividends and consistently raising their payouts can be an attractive option. A history of regular dividend increases reflects a company’s commitment to enhancing shareholder value and gives investors greater confidence in the sustainability of future income.
Notably, to identify top dividend payers, look for blue-chip companies with durable competitive advantages, dependable earnings, and strong cash generation. These characteristics give companies the financial flexibility needed to continue rewarding shareholders, even when economic conditions become challenging.
With these factors in mind, here is a Canadian dividend stock that deserves attention from new investors. Its resilient business, dependable cash flows, impressive history of dividend growth, and visibility into future distributions make it a compelling investment for worry-free income across market conditions.
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A top dividend stock for investors new to investing
For investors new to investing, Fortis (TSX: FTS) is a dependable dividend stock to buy and hold long term.
Fortis owns and operates regulated electricity and natural gas transmission and distribution infrastructure throughout North America. Its regulated business model provides relatively steady, predictable cash flows, reducing exposure to commodity price fluctuations and broader economic volatility. This financial stability gives the utility company the capacity to consistently return capital to shareholders while gradually increasing its dividend year after year.
The company’s long-standing dividend growth record highlights its reliability. Fortis has raised its annual dividend for 52 consecutive years, placing it among Canada’s most dependable dividend-growth companies. Fortis currently pays a quarterly dividend of $0.64 per share, yielding 3.4%.
Fortis to extend its dividend growth streak
Fortis remains on track to extend its multi-decade track record of annual dividend growth, supported by the predictable cash flow and the company’s steadily growing rate base. The utility company’s $28.8 billion capital expenditure initiative through 2030 is projected to expand its rate base to $57.9 billion, representing a compound annual growth rate of 7%. This expansion of regulated assets will drive its earnings, providing the financial flexibility needed to support annual dividend increases.
Fortis’ management targets dividend growth between 4% and 6% through the end of this decade.
Supporting its growth is the continued development of electric transmission infrastructure in the U.S. Rising electricity consumption, together with the increasing integration of renewable generation capacity, is expected to require substantial investment in transmission networks. Fortis is also allocating capital toward grid modernization initiatives and expanding its renewable natural gas and liquefied natural gas infrastructure in British Columbia. Across its operating jurisdictions, these investments are intended to improve system reliability, accommodate incremental electricity demand, and support the long-term development of regulated infrastructure.
Fortis will also benefit from several structural trends impacting the broader North American utility sector. The increasing penetration of electric vehicles, sustained expansion in data centre capacity, and growth in electricity consumption across residential, commercial, and industrial customer segments are likely to drive higher long-term demand for electricity and related infrastructure. These trends could give regulated utilities like Fortis more opportunities to deploy capital while earning returns on infrastructure investments.
The bottom line
For investors new to investing, Fortis is a dependable Canadian dividend stock for long-term income and growth. Its regulated business model, predictable cash flows, solid dividend-growth streak, and expanding rate base provide a strong foundation for continued shareholder returns. With management targeting 4%–6% annual dividend growth and benefiting from rising electricity demand and infrastructure investment, Fortis stock offers stability, income, and growth.
