On the TSX, I think Fortis Inc. (TSX:FTS)(NYSE:FTS) remains one of the top companies every income-oriented investor ought to consider today. Fortis has one of the safest dividend yields in Canada, and provides investors with an extremely stable and growing income profile its peers may have difficulty replicating over the long-term.
Fortis’ business model is focused on providing regulated power distributions to households in North America. Its cash flows are thus extremely stable, and continue to grow at a meaningful clip over time. Until Fortis customers turn off the lights and stop heating their homes, Fortis will continue to churn out impressive cash flows over time.
Fortis provides a level of defensiveness and stability many other companies in the energy and utilities space cannot provide right now.
Fortis has translated its cash flow superiority into dividend increases over time in a way that makes this dividend aristocrat one of the most appealing on the TSX. The company has raised its dividend for nearly five decades straight, each and every year. In good times and in bad, Fortis has remained as stable as one could hope for in a long-term investment.
The company’s 3.9% dividend yield is thus not a reflection of the company’s long-term income flows investors can expect. This is a company that is expected to continue raising its dividend in the high single-digit range for the foreseeable future, making this one of my top picks for those seeking growing income in retirement.
Invest wisely, my friends.
