Fortis Starts 2025 Strong With Higher Earnings And Confident Dividend Outlook

Fortis Inc. (TSX:FTS)(NYSE:FTS) reported earnings last week. And it began 2025 on solid footing, posting first-quarter net earnings of $499 million, up from $459 million in the prior-year period. This performance was driven by organic rate base growth across its regulated utility businesses and a favourable currency exchange, which helped offset higher financing costs and weaker margins in Arizona.

Fortis reaffirmed its five-year capital plan of $26 billion, as it continues to invest into its operations and long-term growth. This level of steady investment enables management to aim for annual dividend increases of between 4% to 6%, through 2029. With 51 consecutive years of dividend hikes, Fortis continues to be one of Canada's most reliable income stocks. The current quarterly dividend stands at $0.615 per share, or $2.46 annually, offering a yield of approximately 3.6%, which is well above what you'll get with most other stocks.

The long-term appeal of Fortis lies in its consistent dividend growth and low-risk profile. Its regulated business model generates stable earnings, with last year's total reaching $1.6 billion-up from $1.5 billion the year prior-and profit margins typically in the 13% to 14% range.

Fortis' solid fundamentals make this an ideal investment to buy and forget about. The stock has delivered total returns (including dividends) of more than 50% over the past five years, with its recurring payouts being a key reason for those gains. Otherwise, with price increases alone, investors would only be up around 25%.

For retirees and income-oriented investors seeking dependable returns with minimal volatility, Fortis remains a compelling long-term holding.

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