Fortis combines 99% regulated earnings, 7% rate-base growth, and a 52-year dividend streak, offering defensive compounding despite interest-rate, regulatory, and wildfire risks.
Overview
Fortis is a North American regulated electric and gas utility holding company with approximately CAD $79 billion of assets, 3.5 million customers, and operations across five Canadian provinces, ten U.S. states, and the Caribbean. **Its 99% regulated earnings mix provides unusually high cash-flow visibility**, because tariffs recover operating costs and an authorized ROE rather than exposing results directly to commodity prices or merchant power markets. The central growth engine is a CAD $28.8 billion 2026–2030 capital plan, expected to lift rate base from CAD $42.4 billion in 2025 to CAD $57.9 billion in 2030 at a 7.0% CAGR. Q2 2026 revenue rose 4.1% to CAD $2,931 million, net income increased 3.1% to CAD $396 million, and adjusted EPS of CAD $0.78 beat consensus by CAD $0.01. The company maintains 4%–6% dividend-growth guidance through 2030 and has increased dividends for 52 consecutive years. At CAD $75.27, valuation is approximately 22.0x TTM P/E, 1.64x price-to-book, and a 3.40% yield. Near-term catalysts include data-center load, MISO transmission, and Tilbury LNG Phase 1B, while high rates, FERC policy, and wildfire risk constrain the valuation premium. The probability-weighted five-year share-price target is CAD $91.65, with a CAD $106.01 total-value target including dividends.