Fortis (FTS) — record C$32.2B capital plan and 53rd dividend raise; ~24x trailing P/E

Watch the video

Quick version: 60-second Short

---

The short version: a record plan at a full price

Fortis (TSX: FTS), the St. John’s-based owner of regulated electric and gas utilities across Canada, the U.S. and the Caribbean, has just unveiled the biggest spending plan in its history: C$32.2 billion of capital over 2027 to 2031. It paired the plan with a 4% dividend increase, its 53rd straight year of raises. The stock closed at CA$82.95 on November 2, up about 17% over twelve months and about 10% in the past month, then hit a new 52-week high of C$84.24 during the session on November 3 before closing at C$83.58.

The catch is price. At about 24 times trailing earnings, Fortis already trades right on the average of its TSX utility peers, and above the C$79.23 average analyst target. So the question for a new buyer is simple: is the good news already priced in? Below we go through the quarter, the new plan and how Fortis compares with its closest TSX peers — Hydro One, Emera, AltaGas, Canadian Utilities and Capital Power — on size, returns, valuation, dividends and analyst targets.

What happened: a record five-year plan and a 4% raise

On November 3, 2026, Fortis released its third-quarter results together with its new 2027–2031 outlook. The plan brings:

• a C$32.2 billion five-year capital program, C$3.4 billion more than the previous plan and the largest in the company’s history,
• about 75% aimed at transmission and distribution, the lower-risk “wires and pipes” that regulators approve and pay a return on,
• midyear rate base growth from C$45.3 billion in 2026 to C$63.9 billion by 2031, about 7.5% a year (up from 7% in the prior plan),
• a 4% increase in the quarterly dividend to C$0.665 a share, payable December 1 to holders of record on November 17,
• annual dividend growth guidance of 4–6% extended through 2031.

Most of the increase comes from two places. At ITC, Fortis’s Midwest transmission business, it is driven by the regional grid operator’s long-range transmission projects, including a US$1.0 billion competitive project in Iowa awarded in October (half of it is in the new plan). At FortisBC, it reflects continued work at the Tilbury LNG site in British Columbia, including the Phase 1B expansion and a new LNG storage tank, both of which now have environmental approval.

The plan is funded mainly with cash from operations and debt issued at the regulated utilities. New common equity is expected to come mostly through the dividend reinvestment plan (DRIP), and Fortis plans to re-establish its at-the-market share program in early 2027. That makes this a steady compounding story, not an earnings jolt: the payoff comes from a bigger rate base over years, not from one quarter.

The Q3 print behind the plan

The quarter itself was solid rather than spectacular:

• Net earnings of C$474 million, or C$0.92 a share, up from C$0.81 a year ago (C$0.87 on an adjusted basis, which excludes taxes and costs on the 2025 sale of FortisTCI).
• Adjusted EPS of C$0.92, a little ahead of the roughly C$0.90 analysts expected.
• Capital spending of C$4.2 billion through September, with about C$6.0 billion now expected for 2026, up from C$5.6 billion.
• Growth came from a bigger rate base — the assets regulators let Fortis earn a return on — and from higher retail electricity sales at UNS Energy in Arizona.

The weak spot is cash. Heavy spending means free cash flow is negative, so the plan depends on steady access to debt markets and on new shares, which matters for the valuation below.

Business overview: Fortis vs utility peers

Fortis owns a group of regulated utility businesses, led by ITC (U.S. Midwest transmission), UNS Energy (Tucson Electric Power in Arizona), Central Hudson in New York, FortisBC in British Columbia and FortisAlberta. Almost all of its earnings come from regulated operations, where returns are set by regulators, which is why the stock is usually treated as a low-volatility dividend holding.

On the TSX screener, Fortis sits in the Utilities sector. Hydro One (H) is Ontario’s dominant transmission and distribution utility. Emera (EMA) owns regulated electric and gas utilities in Florida and Atlantic Canada, and announced a C$72 billion merger with Canadian Utilities in October. AltaGas (ALA) mixes U.S. gas utilities with a midstream export business. Canadian Utilities (CU) is the ATCO group’s utility arm, and Capital Power (CPX) is a power producer rather than a regulated wires company. Brookfield’s partnership-style units and ATCO (the parent of CU) were left out to keep the table comparable.

Overview table

Company (Ticker)	Price	Market cap	Revenue (LTM)	Net income (LTM)
Fortis (FTS)	$82.95	$42.4B	$12.3B	$1.81B
Hydro One (H)	$55.89	$33.5B	$9.52B	$1.42B
Emera (EMA)	$69.93	$21.5B	$8.56B	$1.04B
AltaGas (ALA)	$55.10	$17.2B	$14.7B	$631M
Canadian Utilities (CU)	$51.43	$14.0B	$3.76B	$124M
Capital Power (CPX)	$63.41	$9.96B	$3.77B	$25M
Average (incl. FTS)	—	$23.1B	$8.78B	$842M

Source: TSX screener (November 3, 2026, tsx-2026-11-03.csv) · CAD · LTM = last 12 months. Average includes FTS; blank cells skipped.

Fortis is the biggest utility in the group, worth about C$42 billion, with Hydro One next at about C$34 billion. Fortis also earns the most, about C$1.8 billion over the last twelve months. AltaGas brings in more revenue, but its margins are much thinner because of its midstream business.

Performance: steady year, strong month

Performance table

Company (Ticker)	1M	3M	6M	1Y	5Y	10Y
Fortis (FTS)	+10.2%	+3.6%	+6.1%	+17.2%	+49.8%	+91.3%
Hydro One (H)	+9.1%	−4.0%	−5.6%	+8.1%	+86.4%	+130%
Emera (EMA)	+2.9%	−5.6%	−2.2%	+4.5%	+20.9%	+50.2%
AltaGas (ALA)	+5.1%	+0.2%	+6.5%	+35.0%	+114%	+67.6%
Canadian Utilities (CU)	+0.7%	−6.9%	+5.7%	+31.1%	+42.4%	+33.7%
Capital Power (CPX)	+2.4%	−4.8%	−3.7%	−10.1%	+53.6%	+207%
Average (incl. FTS)	+5.1%	−2.9%	+1.1%	+14.3%	+61.2%	+96.6%

Source: TSX screener (November 3, 2026). Average includes FTS; blank cells skipped. Price change by window.

Over the last year, Fortis rose about 17%, a little ahead of the group average of 14%. AltaGas (+35%) and Canadian Utilities (+31%, helped by the Emera merger news) did better. Hydro One and Emera rose less than 10%, and Capital Power fell about 10%.

The last month is where Fortis stands out: up about 10%, the best in the group, as investors positioned for the new plan. Over ten years, Fortis has nearly doubled in price, behind Capital Power and Hydro One but well ahead of Emera and Canadian Utilities, and that is before dividends.

Valuation: priced like the group, not cheap

Valuation table

Company (Ticker)	P/E	Fwd P/E	PEG	P/S	P/B	P/FCF	Price/Cash
Fortis (FTS)	24.36	22.52	—	3.39	1.79	—	110
Hydro One (H)	23.72	23.70	1.85	3.49	2.58	—	52.22
Emera (EMA)	22.04	19.74	2.83	2.48	1.66	—	52.82
AltaGas (ALA)	27.74	23.39	—	1.18	1.87	—	78.50
Canadian Utilities (CU)	—	18.91	—	3.74	2.78	63.84	28.67
Capital Power (CPX)	—	18.59	—	2.64	2.10	67.55	66.65
Average (incl. FTS)	24.47	21.14	2.34	2.82	2.13	65.70	64.84

Source: TSX screener (November 3, 2026). Average includes FTS; blank cells skipped. Highlighted = lowest (cheapest) positive value per column.

At about 24.4 times trailing earnings, Fortis trades right on the group average of 24.5. On next year’s expected earnings it is about 22.5 times, a little above the average of 21.1. Emera is the cheapest on both trailing earnings and book value, and Capital Power and Canadian Utilities are cheapest on next year’s earnings. Fortis sits in the middle on most measures.

The price-to-free-cash-flow column is blank for Fortis because free cash flow is negative, a normal result for a utility spending heavily on its rate base, but a reminder that the growth is funded partly with outside capital. The takeaway: Fortis is not a bargain here. Investors are paying a normal utility multiple for a steadier, more visible growth plan.

Dividend: 53 years of raises, average yield

Dividends table

Company (Ticker)	Dividend / share	Yield	Payout ratio
Fortis (FTS)	$2.48	3.09%	74.5%
Hydro One (H)	$1.31	2.46%	57.4%
Emera (EMA)	$2.91	4.23%	92.1%
AltaGas (ALA)	$1.26	2.42%	66.3%
Canadian Utilities (CU)	$1.83	3.56%	—
Capital Power (CPX)	$2.69	4.45%	—
Average (incl. FTS)	$2.08	3.37%	72.6%

Source: TSX screener (November 3, 2026). Average includes FTS; blank cells skipped. Yield = indicated.

Fortis paid about C$2.48 a share over the last year, an indicated yield of about 3.1%, just under the group average of 3.4%. With the new raise, the annual rate becomes C$2.66, about 3.2% at the November 3 close. Capital Power (4.45%) and Emera (4.23%) yield the most; Hydro One and AltaGas yield under 2.5%.

Fortis pays out about 74% of its earnings, a bit above the group average of 73% (Canadian Utilities and Capital Power are blank because one-off items distort their trailing payout). That leaves room to keep raising the dividend at the guided 4–6% a year, but not a lot of slack if earnings growth stalls.

Analyst view: price already above the average target

Analyst table

Company (Ticker)	Rating	Price	Target 1Y	Upside	Analysts
Fortis (FTS)	Neutral	$82.95	$79.23	−4.5%	10
Hydro One (H)	Neutral	$55.89	$57.58	+3.0%	10
Emera (EMA)	Neutral	$69.93	$76.25	+9.0%	9
AltaGas (ALA)	Buy	$55.10	$58.10	+5.4%	8
Canadian Utilities (CU)	Buy	$51.43	$54.71	+6.4%	7
Capital Power (CPX)	Buy	$63.41	$80.11	+26.3%	8
Average (incl. FTS)	—	—	—	+7.6%	—

Rating & price: TSX screener (November 3, 2026). Target 1Y: MarketBeat consensus (TSE listings, C$), pulled 2026-11-04 ~05:25 ET: FTS C$79.23 (10 analysts: 5 buy/5 hold), H C$57.58 (10), EMA C$76.25 (9), ALA C$58.10 (8), CU C$54.71 (7), CPX C$80.11 (8). None under 5 analysts. Cross-check: S&P Global via stockanalysis.com shows FTS C$81.18 average from 15 analysts (Hold), range C$70-89. Upside = target ÷ price − 1.

The screener rates Fortis Neutral. The average analyst target on the TSX listing is C$79.23 from 10 analysts, roughly 5% below the share price. A broader consensus of 15 analysts compiled by S&P Global sits at C$81.18, also below the price.

Targets are drifting up. Scotiabank raised its target to C$83 from C$78 after the results (November 4). CIBC moved to C$81 from C$78 on October 28, keeping a Neutral rating. JPMorgan is the main skeptic, with a Sell-equivalent rating and a C$77 target. RBC has the highest target, C$89, with a Sector Perform rating, and Desjardins rates it Buy at C$85. In the peer set, AltaGas, Canadian Utilities and Capital Power are rated Buy, and Capital Power has the most room to its average target, about 26%.

Why it matters: from sleepy dividend stock to growth utility

The old narrative was Fortis as a sleepy dividend stock: low volatility, slow growth, a reliable raise every year. The new narrative is a growth utility, with a record plan driven by data centers, mining, industrial load and new transmission lines, especially in Arizona and the U.S. Midwest.

That growth has to be paid for. The plan relies on debt, the DRIP and some share sales, and the stock already reflects a good part of the good news. For investors, the question is whether faster rate-base growth is worth paying a full peer multiple, with the share price above the Street’s average target.

Bull case

1. A record, low-risk plan. C$32.2 billion over five years, with about three quarters in regulated transmission and distribution that earns approved returns, supports about 7.5% annual rate-base growth.
2. Upside not yet in the plan. ITC sees US$2.9–3.4 billion of further Midwest transmission spending beyond the plan, the Tilbury Phase 2 LNG expansion could add C$2–4 billion, and Tucson Electric Power’s resource plans show up to US$1.6 billion more, with a high-load scenario adding up to US$1.5 billion.
3. A 53-year dividend record. Fifty-three straight yearly raises, with 4–6% a year now guided through 2031, at a payout ratio of about 74%.

Bear case and risks

1. Negative free cash flow. Fortis spends more on projects than its operations bring in (free cash flow of about −C$1.8 billion over the last twelve months), so it leans on debt and new shares. Higher interest rates would raise that cost.
2. Dilution. Shares issued through the DRIP and the at-the-market program dilute existing holders; Q3 alone included about C$260 million of at-the-market sales.
3. Regulatory risk. Arizona regulators still have to approve Tucson Electric Power’s new rates, with a judge recommending a 9.65% allowed return on equity. A weaker final order would trim the growth outlook.
4. Valuation. The stock already sits about 5% above the average analyst target, after a 10% run in a month.

What to watch

1. The Arizona rate decision, expected later in November. Whether the Arizona Corporation Commission adopts the recommended 9.65% return and new rates by December 1.
2. More Midwest transmission. Whether additional ITC projects move into the plan, and how much of the Iowa project is added.
3. Interest rates. Utilities like Fortis often benefit when rates fall, because their dividends compete with bond yields and their growth is debt-funded.
4. Fourth-quarter results in February and analyst targets: whether more brokers follow Scotiabank and CIBC higher, closing the gap to the share price.

Bottom line

Fortis has earned its reputation: 53 straight years of dividend raises, a mostly regulated business and now the largest growth plan in its history, with about 7.5% rate-base growth guided through 2031. The issue is price. At about 24 times trailing earnings and 22.5 times next year’s, Fortis trades right around its utility peers, and the share price is already above the C$79 average target after a 10% run in a month. The next tests are the Arizona rate decision and whether analysts keep raising targets to match the bigger plan.

Video chapters

• 0:00 Hook — Fortis unveils its biggest-ever spending plan
• 0:26 What happened — Q3, the C$32.2B plan and a 4% dividend raise (November 3, 2026)
• 1:25 Overview — Fortis vs TSX utility peers
• 1:44 Performance heatmap
• 2:03 Valuation (trailing vs next-year P/E)
• 2:23 Dividends
• 2:50 Analyst ratings & targets
• 3:25 Why it matters
• 3:42 Bull case
• 4:05 Bear case
• 4:30 What to watch

Data notes

Table figures are TSX screener values (merge tsx-2026-11-03.csv, 2,569 rows; November 2, 2026 closes; CAD). Peers are the largest liquid names in the same screener sector (Utilities): Hydro One, Emera, AltaGas, Canadian Utilities and Capital Power; Brookfield Renewable/Brookfield Infrastructure (partnership-style, US$ reporting) and ATCO (parent of Canadian Utilities) were skipped, and Algonquin, Northland Power and TransAlta were left out to keep six rows. Fortis’s PEG is not meaningful and is excluded; Canadian Utilities’ trailing P/E and payout and Capital Power’s payout are blank because one-off items distort them. Averages include Fortis and skip blank cells. Target 1Y is the MarketBeat consensus for the TSX listings, pulled 2026-11-04 (FTS 10 analysts, H 10, EMA 9, ALA 8, CU 7, CPX 8; none under 5). The yield after the raise uses the November 3 close of C$83.58. Results, plan and dividend figures are from Fortis’s November 3, 2026 release (C$ unless noted).

Sources

• Fortis Inc.: “Fortis Inc. Releases Third Quarter 2026 Results, New Five-Year Capital Outlook and 4% Increase in Fourth Quarter Dividend” (November 3, 2026)
• Earnings call and consensus EPS: Investing.com earnings call transcript (November 3, 2026)
• November 3 close and 52-week high: MarketBeat and pricetargets.com (November 3, 2026)
• Broker moves: Rallies (Scotiabank, November 4, 2026); stockanalysis.com and ScanX (CIBC, JPMorgan, Desjardins, RBC, BMO, October 2026)
• Analyst targets: MarketBeat consensus pages for FTS, H, EMA, ALA, CU and CPX, pulled 2026-11-04; S&P Global consensus via stockanalysis.com
• TSX screener merge tsx-2026-11-03.csv (November 2, 2026 closes, 2,569 rows)

Media credits

Wikimedia Commons: Fortis Inc. logo (File:Fortis Inc logo.svg, public domain); “ITC transmission towers, approx. 42420 West Huron River Drive, Van Buren Township, Michigan” by Dwight Burdette (CC BY 3.0), including the thumbnail photo; “ITC Novi Headquarters, Michigan” by Andrewkjohnson2112 (CC BY-SA 4.0); “Fortis Place” by Nezazor (CC BY-SA 4.0); “22-030.12.2 CSR FBC-Wikipedia Tilbury” by AmyBFortisBC (CC BY-SA 4.0); “FortisBC 230kV - East Kelowna, BC”, “FortisBC 230kV - Okanagan-Similkameen, BC”, “FortisBC Glenmore Substation” and “FortisBC 161kV - Kootenay Boundary, BC” by Tonyglen14 (CC BY 2.0). No AI-generated images were used.

By Andrew · stocksummarizer.com