Traders seeking to acquire publicity to the rise of synthetic intelligence have a variety of nice progress shares to select from. Whether or not you’re excited about investing within the {hardware} (semiconductors, information centres, and so forth.) because the spine of this revolution, the businesses constructing the AI purposes, or different associated tendencies — loads of sectors are benefiting from a steady and constant rise in demand stemming from this nascent know-how.

That stated, one of many high methods I’m excited about enjoying this pattern is by way of the utilities sector. Inside this sector, Fortis (TSX:FTS) continues to be a high choose of mine.

Right here’s why I feel Fortis nonetheless seems to be like the last word defensive play proper now, whereas additionally offering some spectacular long-term progress potential.

Energy demand will develop or maintain regular over the long run

Traders who imagine that, over the long run, inhabitants progress and the rise of recent applied sciences would require extra power output have benefited from proudly owning an organization like Fortis. Certainly, this constant and secure demand progress has allowed Fortis to lift its dividend for greater than 5 many years straight. That’s one of many longest streaks on the TSX, and the corporate’s dividend is among the key stabilizers I feel long-term buyers can depend on as a part of the funding thesis behind this glorious firm.

The factor is, if AI spurs the type of ahead demand the market is pricing in, maybe the dividend hikes and capital appreciation of the previous could also be understanding this firm’s potential.

Little doubt, the inventory chart above signifies that market individuals are shifting on this path. I’m of the view that the steadiness of Fortis’s underlying enterprise mannequin in offering electrical energy and pure fuel to thousands and thousands of residential and industrial clients offers the steadiness and dividend progress that buyers need. Nevertheless, elevated demand courtesy of AI for these identical inputs may amplify the trajectory meaningfully shifting ahead.

Is Fortis a purchase proper now?

I feel buyers seeking to go on the defensive or the offensive have cause to think about Fortis right here.

The corporate’s sub-4% dividend yield continues to be higher than the place Canadian authorities bonds commerce. And with a powerful progress profile shifting ahead, and a powerful steadiness sheet, which may result in further acquisitions down the road, this can be a firm I feel may have loads of upside over the long run.

For these excited about including publicity to a high utility inventory, Fortis stays one among my high picks within the North American group. Till one thing drastic modifications, I’m going to proceed to pound the desk on this title.