20 de outubro de 2020 , por
Simply click here to discover how you can take advantage of this. If we’re looking for strong Canadian dividend stocks, there are a few industries that come to mind in Canada that provide enough of an economic moat to have consistent dividends and dividend growth.
Nonetheless, Fortis has accomplished over the years more than the typical utility. That should tell you a lot about the company and my overall confidence in it. The company currently has over 3.3 million electricity and gas customers and has over 16,000 miles of high-voltage transmission lines in operation south of the border. Lets have a look at Fortis’s dividend Fortis holds the second longest dividend growth streak in the country at 47 years. In an industry plagued with misinformation, our main priority is to maintain complete objectivity and bring investors around the world accurate, timely and high quality investment news and information. This CPP Mistake Could Cost You $423 Per Month, Canada Recovery Benefit: All You Need to Know About the $13,000 CRB.
The company reported net earnings of $274 million, or $0.59 per common share in Q2 2020. Check out Stockrover Here! A company that pays out close to half its earnings as dividends and retains the other half of earnings has ample room to grow its business and pay out more dividends in the future. Market Cap: $25.52 billion Forward P/E: 20.99 Yield: 3.68% Dividend Growth Streak: 46 years Payout Ratio (Earnings): 75.79% Payout Ratio (Free Cash Flows): Premium Members Only Payout Ratio (Operating Cash Flows): Premium Members Only 1 Yr Div Growth Rate: 5.94% 5 Yr Div Growth Rate: Premium Members Only Stocktrades Growth Score: Premium Members Only Stocktrades Dividend Safety Score: Premium Members Only. CRA Update: A New and Improved $2,000 CERB (The CRB! Fortis stock has a very low beta 0.04, so it’s much less volatile than the market and less risky.
And before you think “woah, isn’t 99% of earnings from a single source a bad thing?” Well, not necessarily. A quarter of that capital investment will go into electric transmission infrastructure (which garners very stable revenues). It expects dividends should rise in congruence with its rate base growth. All rights reserved.
Say you bought the stock in the year 2000 and just tucked it away. This means limited stockholder dilution (i.e., no equity issuance), and the investments will not affect Fortis’s corporate debt profile. Stocktrades Ltd PO Box 16018 Lower Mount Royal Calgary Alberta T2T5H7. We could see plenty of new wealth-building opportunities in 2020 that would potentially dwarf any that came before them. Fortis holds the second longest dividend growth streak in the country at 47 years. Fortis operates in what I like to call a “regulated monopoly”. The Motley Fool recommends FORTIS INC. Not to alarm you, but you’re about to miss an important event. $0.4775 per share on the Common Shares of the Corporation, payable on March 1, 2020 to the Shareholders of Record at the close of business on February 18, 2020. Over 60% of its revenues are regulated and nearly 20% of its revenues come from residential customers. The Motley Fool Canada » Dividend Stocks » Fortis (TSX:FTS): This Stock Is a Dividend Rock Star! Why Did Aurora Cannabis (TSX:ACB) and Canopy Growth (TSX:WEED) Zoom Higher Yesterday? 2 Top TSX Stocks Popped Up to 10% Yesterday: More Upside Coming. By owning Fortis stock, you get five years of stable, accretive, compounded annual growth of about 6%. With a five-year compound annual growth rate (CAGR) of 10%, Fortis stock has outperformed both the TSX and the S&P/TSX Capped Utilities index. Please read the Privacy Statement and Terms of Service for more information. Charts provided by StockRover. Fortis has $4.8 billion in unused credit facilities. Despite the pandemic or recession, the company is convinced that it will not slow down its growth plan. In fact, if we look over some of the longest dividend growth streaks in the country, they’re all utilities.
The information on Stocktrades.ca represents the views of the authors and should not be misconstrued as advice. The bulk of these projects are small in nature, reducing the likelihood of them being over budget or overdue. At that time, Fortis was trading in the high $50 range, all time highs. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. However, Stocktrades is by no means associated with the Toronto Stock Exchange, or any of the companies we cover. With Fortis you get a 3.6% dividend yield today. The point is, Fortis is an incredibly solid, reliable stock for income-focused investors.
Instead, just grab this blue-chip dividend stock, throw it in your portfolio and let it collect income and consistent returns for you on auto pilot. As you can see by the chart, the company has significantly outperformed the TSX Index over the last 13 years. Fortis expects to grow its dividend at an annual pace of 6% through 2025. Another 20% will go into its Arizona utility business, where it plans to green its power fleet and phase out coal power operations. Out of the company’s near $20 billion capital plan, 55% of that is in the United States, 41% in Canada, and 4% in the Caribbean. The lower the interest rates, the less interest they pay on most debt.
That dividend only consumes around 70% of Fortis’s cash flows. Telecoms (companies like Telus) are some, pipeline companies being others as well…. In fact, the company is only 3 years away from achieving Dividend King status, which in the United States is 50 consecutive years of dividend growth. Its operations are efficient and it uses capital as few other companies do. You can see why Fortis should outperform the market if it falls by the end of 2020. Fortis is one of Canada’s best Dividend Aristocrat stocks. should outperform the market if it falls by the end of 2020, Canada Revenue Agency: 2 Surprising TFSA Stats You Should Know, Forget the Market Crash: 2 Dividend Stocks to Buy and Hold, Market Crash: 1 Top Stock to Buy to Protect Capital Today. The boost was likely a result of the low interest rate environment we’ve quickly transitioned to due to COVID-19. Fortis is one of Canada’s best Dividend Aristocrat stocks.
To learn more about it and its revolutionary potential to change the industry — and potentially your bank account — click on the link below to get the full scoop. Fortis has a very safe business model, where 99% of its cash flows are regulated. In its final quarter of 2020, Fortis stated that it would be bumping its Capital Plan from $18.8 billion to $19.6 billion over the next 5 years.
Looking for some other expert stock picks? If yes, you should consider Fortis (TSX:FTS)(NYSE:FTS) stock. In return, Fortis believes it can increase its rate base from $30.2 billion in 2020 to $36.4 billion in 2023 and $40.3 billion in 2025. Stocktrades offers strictly investment opinions, not investment advice. During challenging economic times, Fortis is a great place to hide your money and get fairly rewarded for it. The fact is, any Canadian who has invested in this stock over any period of time is likely a very happy shareholder. I’m a current shareholder of Fortis, and this was one of the first quarterly reports I’ve opened in quite some time to produce this article. The third group and probably the most important is utilities companies.
Returns since inception, October 2013. However, considering the current environment we’re in economically and interest rates hitting rock bottom, don’t expect the company to get any cheaper. It has raised its dividend 47 consecutive years in a row. As a public service, you expect it to be reliable because all business is tightly regulated by locked-in contracts and excessive access limits. Robin Brown | September 24, 2020 | More on: FTS FTS. Say you bought the stock in the year 2000 and just tucked it away. Fortis Inc. (FTS.TO) pays an annual dividend of C$2.02 per share, with a dividend yield of 3.68%. Fortis expects long-term growth in the rate base to support continued earnings and dividend growth.
© 2020 The Motley Fool Canada, ULC. In fact, we’re more so looking into what the company is going to be able to do to continue consistent dividend growth.
Fortis Inc. offers a Dividend Reinvestment Plan (“DRIP”) to Common Shareholders as a convenient method of increasing their investments in the Corporation. Over the last 20 years, the company has provided annualized returns of 14% to shareholders, making it one of the best utilities to own in the country. In particular, Fortis (TSE:FTS), carries the second longest streak in the country. In fact, the company is only 3 years away from achieving Dividend King status, which in the United States is 50 consecutive years of dividend growth. When we look to something like operating cash flows, the dividend looks even safer, making up only 33.47% of OCFs. ), TSX Stocks Trading at a 20% Discount: Where to Invest $5,000 Today. Its capital plan is expected to be funded from internal cash from operations, debt at the subsidiary level, and equity from its corporate dividend-reinvestment plan. Despite Fortis stock being listed on the New York Stock Exchange, 75% of its investor base is actually Canadian! This is your chance to get in early on what could prove to be very special investment advice. Fortis reported a strong second quarter regardless of Covid-19 headwinds. This is a 3% increase from 2019 numbers, but is hardly anything to get concerned about. As a result, its likely we see the company expand at a more rapid pace and increase its bottom line along with it. This is exactly why Fortis is going to be able to continue driving long standing growth via its share price and its dividend.
Fortis stock is a Canadian Dividend All-Star. Which leads us to valuation. Right now in the low to mid $50 range, the company is trading at a 22% premium to its 5 year historical price to sales and a 11% premium to its historical price to earnings. In fact, the company has an excellent image on its investor relations page tracking its payout history over the last 12 years. Stocktrades is an independent media portal covering the development related to stocks on the TSX. This is in large part due to heavy investments in growth. It is important to seek out a qualified investment, tax or legal professional before making any decisions related to your own personal investments. A similar company in Canadian utilities owns the longest streak, and I’d expect both of them to achieve Dividend King status with relative ease. Did I mention that Fortis just declared a 5.8% dividend increase for its fourth quarter 2020 dividend payment? Connect with friends faster than ever with the new Facebook app. Fortis is the largest utility provider in Canada, providing electricity to five Canadian provinces, nine U.S. states, and three Caribbean countries. Copyright 2020 Stocktrades Ltd©. When we look at a company’s dividend, we often analyze how safe the dividend is and whether or not it will be cut. For one, it creates a price point where the consumers aren’t being gouged for electricity. Fortis is also a Canadian Dividend Aristocrat with a 47-year dividend-growth streak. As winter approaches in North America, people will be using more electricity. Fortis Inc. (FTS.TO) pays out 75.97% of its earnings out as … The company made a profit of $274 million for the second quarter of 2020. 5G is one of the greatest arrivals in technology since the birth of the internet. Fortis remains well positioned to increase shareholder value through the execution of its investment plan, the balance and strength of its diversified portfolio of utility businesses, and growth opportunities in its service territories and nearby.
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