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Here's Why You Should Add FTS Stock to Your Portfolio Right Now

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Key Takeaways

  • Fortis benefits from transmission expansion, grid modernization and rising energy demand from data centers.
  • FTS plans $28.8B in investments from 2026-2030 to strengthen transmission, distribution and reliability.
  • FTS offers a 3.54% dividend yield and has raised dividends consistently, targeting 46% growth through 2030.

Fortis Inc. (FTS - Free Report) continues to benefit from investments made in the expansion of major transmission projects and from rising demand for energy from data centers.  Grid modernization and systematic investments to upgrade aging infrastructure will enhance service reliability and assist it in serving an expanding customer base. 

Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.

Growth Projection & Surprise History 

The Zacks Consensus Estimate for Fortis’ 2026 earnings per share is pegged at $2.56, suggesting year-over-year growth of 3.23%. 

The Zacks Consensus Estimate for 2026 revenues is pinned at $9.26 billion, suggesting year-over-year improvement of 5.50%.

The company’s long-term (three to five years) earnings growth rate is 4.29%. Fortis surpassed earnings estimates in three out of the last four quarters and missed estimates in one quarter, resulting in an average earnings surprise of 2.38%.

Stable Investments

FTS plans to invest $28.8 billion over the 2026-2030 time frame. These investment initiatives focus on strengthening the transmission and distribution projects. The planned investment will also support load growth, reliability and future generation interconnections. The investments also consider the Springerville Natural Gas Conversion project.

Dividend History

Fortis has a dividend yield of 3.54% versus the industry yield of 2.91%. The company announced its first-quarter 2026 dividend of 64 cents per share, resulting in an annualized dividend of $2.56.

The company is rewarding its shareholders with a continuous increase in dividends. Long-term dividend growth projected by the company for 2030 is 4-6%.

Risk Management

Beta measures an investment’s sensitivity to overall market movements, showing how much its price is likely to fluctuate relative to changes in the market.  Fortis’ beta factor is 0.5, which is less than one and suggests that the stock is less volatile than the market. Thus, it offers stability to investors.

Share Price Performance

In the past three months, the stock has gained 2.3% against the industry’s 4.1% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks in the Zacks Utilities sector are NextEra Energy (NEE - Free Report) , Edison International (EIX - Free Report) and ONE Gas (OGS - Free Report) . While EIX currently sports a Zacks Rank #1 (Strong Buy), NEE and OGS carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate of NextEra Energy, Edison International and ONE Gas is projected at 8.08%, 10.93% and 6.66%, respectively. 

The dividend yields for NextEra Energy, Edison International and ONE Gas are projected at 2.89%, 6.00% and 3.49%, respectively.


See More Zacks Research for These Tickers


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NextEra Energy, Inc. (NEE) - free report >>

Edison International (EIX) - free report >>

ONE Gas, Inc. (OGS) - free report >>

Fortis (FTS) - free report >>

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