If you want a good dividend stock to help battle inflation, your focus should be on a company that has solid track records for not just paying but increasing its payouts. Fortis Inc (TSX:FTS)(NYSE:FTS) is a terrific example of that, as the Canadian-based utility stock pays a yield of 4.4% right now.
Last month, Fortis also announced a 6% increase to its dividend. Investors will now be collecting $0.565 per share every quarter. The increase marks the 49th straight year that the company has boosted its payouts. To generate $1,000 in dividends from the stock, you would need to invest roughly $22,700 based on Fortis' current yield.
Fortis is a utility company that operates in Canada, the U.S., and the Caribbean. Its business has been steadily growing over the years, from $8.4 billion in sales in 2018 to over $9.4 billion in 2021. Over the trailing 12 months, the company's profit margin has been a solid 12% of revenue. And with a payout ratio of 80%, there's no danger about the safety of Fortis' dividend and it's likely that next year its streak of dividend increases will hit the 50-year mark.
Ove the past year, shares of the stock have declined by 16%. However, with the business still looking solid, this could be a great time to buy. Fortis is currently trading at 19 times earnings and 1.3 times its book value. It's also getting close to its 52-week low of $50.43. For long-term investors, now may be an optimal time to load up on this top dividend stock.
