Is FTS a Buy? What to Consider in 2026
Last updated July 2026
Short answer
The bull case for FTS (FTS) rests on Rate-base growth engine: The ~CAD 28.8 billion 2026-2030 capital plan is expected to grow the rate base from ~CAD 42.4 billion to ~CAD 57.9 billion, roughly 7% annually. Revenue (TTM) is ~$8.7B USD (~CAD 12B). If you believe that thesis holds, the real questions become position sizing and overlap, not timing. The main risk to that view: As a capital-intensive utility, Fortis carries substantial debt and is sensitive to interest rates; higher rates raise financing costs and make its dividend yield less attractive relative to bonds, which can pressure the share price. Whether FTS is a buy comes down to whether you believe the thesis. This is informational, not a recommendation, and Walnut is not an investment adviser.
Fortis Inc. is a St. John's, Newfoundland-based utility holding company that owns 10 regulated electric and gas businesses serving roughly 3.5 million customers across Canada, the United States, and the Caribbean. Its largest platforms include ITC Holdings (U.S. electricity transmission, ~80% owned), UNS Energy (Tucson Electric Power and other Arizona utilities), Central Hudson in New York, and FortisBC in British Columbia. About 99% of assets are regulated, which means earnings come largely from rate-base returns approved by regulators rather than from commodity prices or competition, giving the business unusually predictable cash flows. The investment picture is that of a defensive, income-oriented holding. Fortis funds a large multi-year capital plan (~CAD 28.8 billion for 2026-2030) to grow its rate base from roughly CAD 42.4 billion in 2025 to about CAD 57.9 billion by 2030, an annual growth rate near 7%, which underpins guidance for 4% to 6% annual dividend increases through 2030. The stock trades at a premium utility valuation and offers a moderate yield, so the trade-off is stability and dividend reliability against limited upside and sensitivity to interest rates and regulatory decisions.
What's the case for buying FTS?
1. Rate-base growth engine
The ~CAD 28.8 billion 2026-2030 capital plan is expected to grow the rate base from ~CAD 42.4 billion to ~CAD 57.9 billion, roughly 7% annually. Because regulated utilities earn a set return on that invested base, rising rate base translates fairly directly into higher earnings over time.
2. Long dividend-growth record
Fortis has raised its dividend for 52 consecutive years, one of the longest streaks among North American public companies. Management guides to 4% to 6% annual dividend growth through 2030, supported by regulated cash flows, which makes the stock a core holding for income-focused investors.
3. Grid investment and electrification tailwinds
Transmission and distribution spending is supported by electrification, data-center demand, grid reliability needs, and aging infrastructure replacement. ITC Holdings, its U.S. transmission platform, is positioned to benefit from interconnection and reliability-driven investment.
4. Regulatory and geographic diversification
Operating across multiple Canadian and U.S. jurisdictions plus the Caribbean spreads regulatory risk so an unfavorable decision in one region has limited impact on the whole. Constructive U.S. regulatory outcomes have supported recent results.
What are the risks to FTS?
As a capital-intensive utility, Fortis carries substantial debt and is sensitive to interest rates; higher rates raise financing costs and make its dividend yield less attractive relative to bonds, which can pressure the share price. Earnings depend on regulators approving allowed returns and cost recovery, so adverse rate-case outcomes are a real risk. A large portion of assets and earnings are in U.S. dollars, adding currency translation exposure for Canadian reporting. The heavy ongoing capital program can require equity or debt issuance that may dilute shareholders or add leverage. Growth is inherently modest, so the stock can lag in strong bull markets and is best viewed as a defensive rather than high-return holding.
How is FTS valued? (as of July 2026)
Snapshot for FTS as of July 2026, sourced from Yahoo Finance and may be delayed. Valuation figures move with price and earnings; verify the current numbers with your broker before deciding.
- Market cap: ~$27B USD (~CAD 36.5B)
- Revenue (TTM): ~$8.7B USD (~CAD 12B)
- Q1 2026 net earnings: ~CAD 501M (~$0.99/share)
- P/E ratio: ~24x
- Dividend yield: ~3.5% to 4%
- 2026-2030 capital plan: ~CAD 28.8B
Fortis trades at a premium utility multiple (roughly 24x earnings), reflecting the market's willingness to pay up for regulated, predictable cash flows and a five-decade dividend-growth record. Reported figures are in Canadian dollars; USD conversions are approximate. The valuation leaves limited room for multiple expansion, so returns lean on earnings and dividend growth rather than re-rating.
How do you decide if FTS is a buy?
Rather than asking whether FTS is a buy in the abstract, it tends to help to answer four questions:
- Thesis: do you believe the case above, and is it still true today?
- Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
- Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
- Overlap: check whether you already hold FTS indirectly through an index or sector ETF before adding more.
For the full picture, see the FTS stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about FTS against your real portfolio and see your actual exposure before deciding.
The bottom line on FTS
The bottom line: FTS's story right now is Rate-base growth engine, with revenue (ttm) at ~$8.7B USD (~CAD 12B). If you believe that narrative continues, the call is about sizing FTS sensibly and checking overlap with what you own; if you doubt it (the risk: as a capital-intensive utility, Fortis carries substantial debt and is sensitive to interest rates; higher rates raise financing costs and make its dividend yield less attractive relative to bonds, which can pressure the share price.), it is not for you. Decide from the thesis, not the ticker. Walnut is not an investment adviser.
More on FTS
- FTS stock guide (what the company does, ETFs that hold it, similar stocks, and the themes it fits)
- FTS stock forecast (the drivers and risks shaping the outlook)
- Does FTS pay a dividend?
Build a basket around FTS with Walnut
Use FTS as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is FTS a good stock to buy right now?
+
The case for FTS right now is Rate-base growth engine, with revenue (ttm) at ~$8.7B USD (~CAD 12B). If you believe that thesis holds, FTS is a way to own it and the real questions are sizing and overlap, not timing; the main risk to that view is as a capital-intensive utility, Fortis carries substantial debt and is sensitive to interest rates; higher rates raise financing costs and make its dividend yield less attractive relative to bonds, which can pressure the share price. So it comes down to whether you believe the thesis. Walnut is not an investment adviser and this is not a recommendation.
What does FTS do?
+
Fortis Inc.
What are the main risks of FTS?
+
As a capital-intensive utility, Fortis carries substantial debt and is sensitive to interest rates; higher rates raise financing costs and make its dividend yield less attractive relative to bonds, which can pressure the share price. Earnings depend on regulators approving allowed returns and cost recovery, so adverse rate-case outcomes are a real risk. A large portion of assets and earnings are in U.S. dollars, adding currency translation exposure for Canadian reporting. The heavy ongoing capital program can require equity or debt issuance that may dilute shareholders or add leverage. Growth is inherently modest, so the stock can lag in strong bull markets and is best viewed as a defensive rather than high-return holding.
What does Fortis Inc. do?
+
Fortis is a utility holding company that owns 10 regulated electric and gas businesses serving about 3.5 million customers across Canada, the United States, and the Caribbean. Roughly 99% of its assets are regulated, so earnings come mainly from approved returns on its rate base.
Is FTS a dividend stock?
+
Yes. Fortis is best known as an income stock, having raised its dividend for 52 consecutive years. Management guides to 4% to 6% annual dividend growth through 2030, supported by its regulated cash flows.
What is Fortis's dividend yield?
+
As of July 2026 the yield is roughly 3.5% to 4%, in line with other large regulated utilities. The exact figure varies with the share price and whether you look at the NYSE (USD) or TSX (CAD) listing.
How does Fortis grow its earnings?
+
Growth comes primarily from expanding its regulated rate base. Its ~CAD 28.8 billion 2026-2030 capital plan is expected to grow rate base about 7% annually, and utilities earn a regulated return on that invested base, which supports rising earnings and dividends.
Walnut is informational and is not an investment adviser. This page is educational and not a recommendation to buy or sell FTS; figures are approximate and dated, and your own situation, time horizon, and risk tolerance should drive any decision. Verify current data before investing.