Topic: How To Invest

Dividend Advisor Hotline – Friday, October 2, 2020

Article Excerpt

FORTIS INC., $54.91, Toronto symbol FTS, is a buy. The company is the main supplier of electrical power in Newfoundland and PEI. Fortis 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 2020 payment, Fortis will increase its quarterly dividend by 5.8%, to $0.505 a share from $0.4775. The new annual rate of $2.02 yields 3.7%. As well, starting December 1, 2020, the company will reinstate a 2% discount on the purchase of new common shares under its dividend reinvestment plan. Fortis now plans to invest a total of $19.6 billion in its operations between 2021 and 2025. That’s $800 million higher than its earlier plan. To put those figures in context, the company’s market cap (the total value of all outstanding shares) is $25.5 billion. Most of that spending will go toward improving the performance and reliability of existing operations. Fortis also plans…