This continued demand supports relatively stable profits. That’s why utility stocks have traditionally been attractive to conservative and income-oriented investors. Utilities also operate within regulated frameworks that allow them to earn a reasonable return on their investments. These regulations add visibility and predictability to future cash flows, limiting earnings volatility over time.
That financial stability has historically allowed Canadian utilities to pay reliable dividends. Looking ahead, rising energy demand, driven by electrification, population growth and continued infrastructure development, further strengthens the sector’s prospects. As a result, utilities are well positioned to continue generating reliable income alongside long-term capital growth, which will contribute to strong total returns over time.
Against this backdrop, this is a top Canadian company stock with great total returns.
A top utility stock to consider now
Fortis (TSX:FTS) is one of the most attractive investment opportunities in the Canadian utilities sector for investors looking for solid total returns. The utility focuses on energy transmission and distribution and generates stable revenues from essential services. Furthermore, its interest-rate regulated corporate structure and predictable cash flows largely protect the country from economic downturns, supporting steady dividend payments and growth.
Thanks to its defensive business model, interest-regulated asset base and highly predictable cash flows, it has increased its dividend for 52 years in a row. Furthermore, Fortis is well positioned to continue dividend growth in the coming years.
While income investors like Fortis for its consistency, the stock also offers meaningful growth potential. Rising demand for electricity supports long-term profit growth. Over the past year, Fortis shares have risen more than 23%, driven by increasing demand, improving market sentiment and solid operating performance. With these tailwinds, the stock’s momentum could extend into 2026 and beyond.
Combined with its defensive activities and proven dividend performance, Fortis stands out as a leading utility stock with the potential to generate attractive total returns through both steady distributions and capital growth.
Fortis achieves solid total returns
Fortis appears well positioned to deliver solid long-term total returns, supported by steadily rising energy demand and its $28.8 billion capital plan over the next five years. This investment program focuses on transmission and distribution networks and other critical infrastructure assets that will deliver stable and predictable returns. Importantly, most of the capital plan is anchored in regulated projects, which limit earnings volatility, and only a small portion is concentrated in large-scale developments, increasing its overall feasibility.
As a result of this investment strategy, Fortis’s consolidated interest base is expected to increase significantly, from approximately $42 billion in 2025 to $58 billion in 2030. This implies an average annual interest base growth of 7%, providing a strong basis for earnings growth over the period. A growing interest base also supports Fortis’ ability to deliver consistent dividend increases, with management targeting annual dividend growth of 4% to 6%.
In addition to its regulated growth profile, Fortis will benefit from the increase in electricity demand, especially from energy-intensive sectors such as manufacturing and data centers. These trends could further strengthen long-term growth prospects. At the same time, the company is divesting non-core assets, a strategy that increases balance sheet strength and reduces overall business risk.
Overall, Fortis is well positioned to deliver strong total returns over the long term.
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