Fortis Named Low-Beta Utility Pick with 3.24% Yield, 5.4% Growth Estimate
Analysts highlighted Fortis as a low-beta utility stock to shield portfolios from elevated inflation, citing a 0.49 beta and 3.24% dividend yield. Fortis’s current-year earnings estimate was raised 3.9% over the past 60 days, with an expected 5.4% growth rate for the period.
1. Inflation Drivers for Utility Picks
Wholesale prices rose 0.5% month-over-month and 2.9% year-over-year in January, while core PPI jumped 0.8% M/M and 3.6% Y/Y, both exceeding Federal Reserve targets. With interest rates held at 3.25–3.50% after 75 basis points of cuts in 2025, markets face pressure from tech selloffs and recession fears, driving demand for low-beta, high-dividend utilities.
2. Fortis Profile and Outlook
Fortis operates regulated electric and gas utilities plus non-regulated hydroelectric assets across Canada, the U.S. and the Caribbean. The stock’s beta of 0.49 and dividend yield of 3.24% make it a defensive income play, while analysts raised its current-year earnings estimate by 3.9% over 60 days, forecasting 5.4% growth for the period.