Fortis Offers 4.34% Dividend, 3,408 MW Capacity Across North American Utilities
Fortis offers a 4.34% dividend yield and serves approximately 2.62 million customers across North America, with 3,408 MW of generation capacity including 68 MW of solar and 250 MW of wind. Raymond James rates the utility Outperform with a $57.82 target, highlighting its resilience in a high-rate environment.
1. Dividend Profile and Stagflation Resilience
Fortis is a regulated gas and electric utility with a 4.34% dividend yield and more than 50 consecutive years of dividend increases, qualifying as a Dividend King. The company's stable cash flows and essential service status position it as a potential hedge against stagflation, as rising inflation could boost utility revenues while demand remains inelastic.
2. Service Territory and Customer Base
The company serves approximately 2.62 million customers across Canada, the United States and the Caribbean, including 447,000 customers in southeastern Arizona, 103,000 in Mohave and Santa Cruz counties, 1.087 million gas customers in British Columbia, 592,000 in Alberta, 69,000 in Ontario, 275,000 in Newfoundland and Labrador, 34,000 in Grand Cayman and 17,000 in Turks and Caicos.
3. Generation and Renewable Capacity
Fortis holds 3,408 MW of electric generation capacity, composed of 68 MW of solar, 250 MW of wind and additional gas-fired and hydroelectric capacity. Its assets include four hydro facilities totaling 225 MW in Alberta, plus 145 MW on the island portion of Newfoundland and Labrador and 90 MW on Prince Edward Island, underpinning a diversified energy mix.
4. Analyst Rating and Outlook
Raymond James has assigned an Outperform rating with a $57.82 USD target, citing Fortis's resilient cash flows, potential benefits from lower interest rates and diversified footprint. The firm highlights the utility's regulated rate structures and ongoing renewable investments as catalysts for sustained dividend growth and capital appreciation.