Fortis (TSX:FTS) stock is known for its impressive dividend yield of 4.42%. This means that if you invest $100,000 in the stock, you can expect to receive $4,420 in annual cash back, assuming the dividend remains stable. Additionally, Fortis has a remarkable track record of increasing its dividend for 50 consecutive years, making it one of Canada’s esteemed Dividend Kings.
However, it is crucial to assess whether Fortis’s historical trend will continue. While history has shown us companies that thrive and then decline, Fortis’s competitive position suggests that it may continue its success. With regulated utilities across Canada, the U.S., and the Caribbean, Fortis operates in a market protected from competition. This, partnered with the difficulty for competitors to enter the market due to strict regulations, allows Fortis to maintain its margins.
Fortis has consistently performed well in its earnings releases, frequently…
