Any investor focusing on income as a primary goal and is not aware of the track record of one of Canada’s best dividend companies, Fortis Inc. (TSX:FTS)(NYSE:FTS), should certainly take notice.
The company announced in December its 46th consecutive dividend increase, a remarkable feat, putting Fortis in an elite group of companies of dividend growers that shows no signs of slowing down in its efforts to return more capital to shareholders over time.
For dividend investors, a growing dividend is perhaps more important that a specific yield, as a growing dividend allows investors to have income that will grow over time, reducing the impact of inflation and allowing for increased spending power in retirement.
Any investor who is inching closer to retirement should certainly consider adding a chunk of one’s portfolio into a basket of companies like Fortis – companies with proven track records of dividend increases.
Fortis has committed to raising its dividend by roughly 6% over the next four years, adding to the security investors seek with respect to the degree by which companies like Fortis raise their dividend.
I suggest looking at companies with mid to high single digit dividend growth rates, as these are more manageable for companies to maintain over time, assuming earnings continue to increase at this clip as well.
Fortis has a solid balance sheet and the ability to continue to grow over time, with a significant percentage of the company’s revenue locked in via fixed term contracts, making this company one of my favourite dividend options out there.
Invest wisely, my friends.
