For investors looking for a solid stock to put inside of a Tax-Free Savings Account (TFSA), Fortis Inc. (TSX:FTS)(NYSE:FTS) is a top option to consider. As a leading North American regulated utility, its business model is built on essential services that provide predictable cash flows, making it a defensive anchor during market volatility. The company recently marked a historic milestone by achieving 52 consecutive years of dividend increases, a track record that stands as one of the longest in Canada and underscores a deep commitment to returning capital to shareholders.
As good of a dividend growth stock Fortis has been, it has no plans of that streak ending anytime soon. Management has extended its annual dividend growth guidance of 4% to 6% through 2030, providing TFSA investors with a clear long-term income trajectory. This growth is supported by a massive $28.8 billion five-year capital plan for 2026 through 2030, the largest in the company's history.
Ultimately, holding Fortis in a TFSA allows investors to capitalize on the power of compounding without the drag of taxes on a growing dividend stream. With nearly all of its assets being regulated, the company offers a low-risk profile that aligns perfectly with the goals of long-term capital preservation and steady wealth accumulation.
Currently, it offers an attractive yield of 3.3% and the stock has risen by around 9% thus far in 2026. Not only is it a stable investment, but it can also be relied on for solid, recurring, and growing dividend income, making it an ideal option to hold inside of a TFSA.
