Greener energy will lift your dividend

Article Excerpt

FORTIS INC., $54, is our #1 Income Buy for 2019. The company (Toronto symbol FTS; Conservative & Income Portfolios, Utilities sector; Shares outstanding: 436.6 million; Market cap: $23.6 billion; Price-to-sales ratio: 2.7; Dividend yield 3.5%; TSINetwork Rating: Average; www.fortisinc.com) plans to invest a total of $18.3 billion between 2020 and 2024 in its operations. Most of that spending will go toward upgrading its existing operations, particularly converting its fossil fuel-burning power plants to renewable sources. The company also plans to improve the reliability of its transmission lines. Regulated utilities account for 99% of Fortis’s current assets, and regulators will let it pass along most of upgrade costs to its customers. That will help Fortis with its plan to raise your dividend 6% each year through 2024. The current annual rate of $1.91 a share yields 3.5%. 3.5%….