The TSX has me frightened. I do know, once we take a look at latest efficiency, one may marvel why on earth that is perhaps. In any case, it has not too long ago hit all-time highs! But that’s precisely why I’m frightened. At these heights, buyers begin to get antsy and need to take their earnings. And in an economic system that’s nonetheless beneath the strain of excessive inflation and rates of interest, that’s precisely what tends to occur.

That’s why at this time I’d advocate buyers contemplate a Dividend Knight. It may be straightforward to disregard these firms, on condition that they are typically extremely boring. However I like boring, and you need to too. And some of the fantastically boring shares on the market proper now? That’s Fortis (TSX:FTS).

Why FTS

Fortis is a regulated utility stretched throughout North America and into the Caribbean. It not too long ago reported its second-quarter earnings, proving why it has demonstrated strong progress not simply this quarter, however for years.

Fortis’ forward-looking capital investments, regulatory achievements, and sustainability commitments all lean into why it is a sturdy long-term funding. Throughout earnings, Fortis reported internet earnings of $384 million or $0.76 per share. This was a significant improve from the $331 million or $0.67 reported on the identical time final yr. The expansion was helped by fee base growth, with vital initiatives just like the Eagle Mountain Pipeline and income changes at Central Hudson.

With capital expenditure hitting $2.9 billion within the first half of 2025, Fortis inventory is now on observe with a deliberate $5.2 billion in capex for the yr. The dividend inventory additionally superior an settlement to serve a brand new knowledge centre in Tucson Electrical Energy. All in all, the corporate proved it’s not standing nonetheless.

Extra to come back

This leads buyers to a robust Dividend Knight with extra within the making. The corporate’s strategic investments in infrastreucture and vitality effectivity initiatives already help constant progress. All of it feeds into its $26 billion five-year capital plan to spice up its fee base from $39 billion as of 2024 to $53 billion by 2029. That’s a compound annual progress fee (CAGR) of 6.5%!

And but, even with all this secure progress, even with a 3.6% dividend yield, even with a rise within the dividend yearly for over 50 years, the corporate stays low cost. The dividend inventory trades at 20.1 occasions earnings, exhibiting affordable valuation for a long-term inventory.

Actually, the corporate continues to emphasize that it’ll continue to grow dividends by 4% to six% between now and 2029. And with a payout ratio of 71% at writing, that exhibits the corporate definitely has the capability to continue to grow the enterprise whereas supporting dividend progress. Actually, even an funding of $7,000 at this time would herald annual earnings of $255.

Backside line

In the event you’re an investor frightened in regards to the future and a inventory dip, then Fortis inventory is the place it’s good to be. This can be a stellar funding for these wanting some earnings on the aspect and progress long run. And but it continues to be an missed Dividend Knight on the TSX at this time. So don’t observe the gang, don’t consider boring isn’t lovely, as a result of on this planet of investing, that’s precisely what you need.