Wednesday, September 23, 2020

Dividend Increase – Fortis Inc. (TSE:FTS)


Today, September 23rd the Board of Directors of Fortis Inc. announced a quarterly dividend increase of from CA$ 0.477 to CA$ 0.505 per share that’s payable December 1, 2020 to holders of record November 18, 2020. This represents a 5.87% increase over last quarterly dividend.


In addition, the Corporation has extended its targeted average annual dividend per common share growth of approximately 6% to 2025 based on a 2020 annualized dividend of $1.91. Effective December 1, 2020, the 2% discount offered on common share issuances under the dividend reinvestment plan will be reinstated.


With current price CA$ 52.90 (yesterday's close), this raise brings their dividend yield to 3.82%.


Fortis is a member of Canadian Dividend All Star List with a 46 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 5.9, 6.2, 7.4 and 5.8. (Canadian Dividend All-Star List)




Since I own 140 shares of FTS, this will increase my portfolio's projected annual net dividend income by CA$ 11.68.


This increase raises my YOC to 4.84%.





Summary of 2020 Dividend Increases / Cuts




As you can see, some large dividend cuts will have the effect that full-year growth will be negative. I also believe that there will come more cuts during this year.


Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long FTS


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