Fortis is the premium “sleep-well-at-night” regulated utility: a newly de-risked portfolio plus a record $28.8B capex pipeline aimed at compounding rate base (and dividends) through 2030.
Overview
Fortis (FTS.TO) is positioned as a premium, defensive compounder entering 2026 with a simplified, lower-risk portfolio and a record growth runway. After divesting Caribbean utilities in late 2025, Fortis is effectively **a North American regulated pure-play**, reducing exposure to geopolitical volatility and weather risks while improving earnings stability and lowering beta. The centerpiece is the **$28.8B 2026–2030 capital plan**, expected to drive **~7% rate-base CAGR through 2030** and support management’s extended **4–6% annual dividend growth guidance through 2030**, continuing a **52-year dividend increase streak**. With interest-rate headwinds easing (stabilizing bond yields), the sector’s cost-of-capital pressure has moderated, making Fortis’ premium valuation more defensible. The recommendation is “Constructive Accumulation”/BUY for income and conservative growth investors, targeting mid-to-high single-digit total returns driven by dividend yield plus steady EPS growth.