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Fortis Inc(FTS-N)

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Worried About a Recession? Park Your Money in This High-Yielding Dividend Stock

Baystreet - Mon Nov 7, 2022

One of the best dividend stocks you can buy on the Toronto Stock Exchange is Fortis Inc (TSX:FTS)(NYSE:FTS). The utility company has a stable business that can perform well in recessions and inflationary periods. Since it provides essential services to its customers, it won't be as vulnerable to economic cycles the way businesses in other industries will be.

Fortis is a low volatility stock although recently it has been falling sharply and is now down 18% since the start of the year (the TSX is down only 8%). The company is coming off a solid earnings report where for the third quarter, its net earnings of $326 million were up 11% from the $295 million profit that Fortis reported in the prior-year period.

What makes Fortis attractive for dividend investors is that it pays a yield of 4.3%. Plus, it has a terrific track record for increasing its payouts. This year, it increased its dividend for the 49th consecutive year, which is one of the most impressive streaks on the TSX. And there's no end in sight to those increases as the company projects that through to 2027, it will continue to increase its dividend between 4% and 6% each year.

Fortis says that while there is volatility in the economy, " the Corporation does not currently expect there to be a material impact on its operations or financial results in 2022."

And in the longer term, taking into account its guidance for continued dividend increases, there don't appear to be huge red flags that the company sees in future years, either.

This is a safe stock dividend investors can hang on to for the long haul.

Provided Content: Content provided by Baystreet. The Globe and Mail was not involved, and material was not reviewed prior to publication.

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