#1 Income Buy just gets better

Article Excerpt

FORTIS INC. $55 (Toronto symbol FTS; Conservative & Income Portfolios, Utilities sector; Shares outstanding: 436.6 million; Market cap: $24.0 billion; Price-to-sales ratio: 2.8; Dividend yield 3.5%; TSINetwork Rating: Average; www.fortisinc.com) is the main supplier of electrical power in Newfoundland and PEI. It also owns electrical utilities across Canada, the U.S. and the Caribbean. In addition, the company distributes natural gas in British Columbia, Arizona and New York State. Starting with the December 2019 payment, Fortis will increase its quarterly dividend by 6.1%, to $0.4775 a share from $0.45. The new annual rate of $1.91 yields 3.5%. The company will now invest a total of $18.3 billion between 2020 and 2024 in its operations. That’s $1 billion higher than its earlier estimate. Most of that spending will go toward upgrading its existing businesses instead of adding new projects—and risks—to its operations. Regulated utilities account for 99% of Fortis’s current assets, and regulators will let it pass along most of upgrade costs to its customers. With…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.