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    How Fortis’ Higher Q1 Dividends And Larger Capital Plan At Fortis (TSX:FTS) Has Changed Its Investment Story

    Simply Wall St·12/14/2025 05:32:58
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    • In early December 2025, Fortis Inc.’s board declared Q1 2026 dividends of CA$0.64 per common share and varying amounts on seven series of preferred shares, all payable on March 1, 2026 to shareholders of record as of February 17, 2026.
    • These dividend declarations build on Fortis’s 52-year streak of annual dividend increases and an expanded CA$28.80 billion capital plan focused on regulated assets, underscoring its emphasis on stable, income-backed growth.
    • Against this backdrop of sustained dividend growth and a larger regulated capital plan, we’ll now assess how these developments reshape Fortis’s investment narrative.

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    Fortis Investment Narrative Recap

    To own Fortis, you generally need to believe in the appeal of regulated utility earnings, steady but modest growth, and a long dividend track record. In the near term, the key catalyst remains execution on its CA$28.80 billion capital plan, while the biggest risk is that regulatory or interest rate pressures constrain returns on that spend. The latest Q1 2026 dividend declaration does not materially change either the short term upside or that core risk profile.

    The most directly connected development is Fortis’s recent CA$0.64 per share dividend increase in Q4 2025, which extended its 52 year streak of annual dividend growth. Together with the reiterated CA$0.64 dividend for Q1 2026, this underlines management’s focus on consistent income even as the company leans into large, regulated capital projects that rely on continued regulatory support and funding at manageable borrowing costs.

    Yet beneath this history of rising dividends, investors should be aware that sustained high capital spending and rising interest costs could eventually...

    Read the full narrative on Fortis (it's free!)

    Fortis' narrative projects CA$13.8 billion revenue and CA$2.1 billion earnings by 2028. This requires 5.2% yearly revenue growth and about a CA$0.4 billion earnings increase from CA$1.7 billion today.

    Uncover how Fortis' forecasts yield a CA$73.10 fair value, a 4% upside to its current price.

    Exploring Other Perspectives

    TSX:FTS 1-Year Stock Price Chart
    TSX:FTS 1-Year Stock Price Chart

    Six members of the Simply Wall St Community value Fortis between CA$11.72 and CA$73.10, showing how far apart individual views can be. When you set those opinions against Fortis’s heavy, rate regulated capital program, it becomes even more important to weigh how regulatory decisions and funding costs might influence future outcomes.

    Explore 6 other fair value estimates on Fortis - why the stock might be worth as much as CA$73.10!

    Build Your Own Fortis Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.