Fortis Raises Its Dividend 4% and Pledges More Growth Through 2031

Fortis (TSX: FTS) has long been viewed as one of the best long-term investments to consider.

And now, there’s one more reason for that belief to continue.

Fortis announced a 4% dividend increase this week during its latest quarterly update.

This means that Fortis extends its dividend increase to 53 consecutive years, the second-longest of any stock in Canada.

The company also extended that growth guidance through 2031.

That means a higher payout today and a longer outlook for further increases.

But does this make Fortis worth adding to an income portfolio?

53 consecutive years of increases The latest increase has Fortis bumping the quarterly dividend to $0.67 per share.

The first payment at that new rate will be December 1, with an ex-dividend date of November 17.

The new rate calls for an annual dividend of $2.66, and management calls for additional annual bumps of 4% to 6% through 2031.

The benefit for existing shareholders is additional income without buying more.

Investors who opt to reinvest those payments can build their portfolio further and allow future increases to buy additional shares.

Additionally, the guidance on future increases helps set expectations.

Investors with longer-term timelines may feel more comfortable knowing that additional increases are being planned for.

Continue reading at the original source →