1.Canadian Utilities Limited
CU-X.TO (TSX)
Canadian Utilities Limited stands out as a diversified utility firm with operations in electricity, natural gas, and water sectors, boasting a strong reputation for consistent dividend payouts. With a dividend yield of 5.53%, it remains an attractive choice for income-focused investors, despite a 1-year return of -9.71% and a modest 5-year return of 3.74%. This company exemplifies a stable investment in a sector known for reliability and financial health.
Pros:
- Consistent dividend history
- Diversified utility operations
Cons:
- Negative returns over the past year
- Market volatility risk
2.Emera Incorporated
EMA-PC.TO (TSX)
Emera Incorporated stands out in the utility sector with its strong operational performance, especially as it gears up for 2026. Offering a robust dividend yield of 6.26%, this company appeals to investors seeking reliable income from financially healthy companies. Recently upgraded to a "Buy" rating by UBS, Emera demonstrates consistent growth potential, evidenced by a 5-year return of 8.81%.
Pros:
- Strong operational performance
- Diverse energy mix
Cons:
- Lower returns compared to peers
- Market volatility risk
3.Fortis Inc.
FTS.TO (TSX)
An attractive option for long-term investors, Fortis Inc. has demonstrated impressive stability with a dividend yield of approximately 3.37%. The utility company, serving 3.5 million customers across the US, Canada, and the Caribbean, has increased its dividend for 52 consecutive years, reflecting its commitment to reliable income. Analysts have recognized Fortis with an Overweight rating from Barclays and a Sector Perform from RBC Capital, solidifying its reputation as a financially healthy investment choice.
Pros:
- Strong dividend growth history
- Stable returns over time
Cons:
- Lower yield compared to high-yield stocks
- Market volatility risk
4.Brookfield Infrastructure Partners
BIP.UN (TSX)
Brookfield Infrastructure Partners is a global operator known for its expansive utility assets in electricity transmission and distribution. With a solid dividend yield of 4.52% and impressive long-term growth, it delivers a one-year return of 12.63% and a five-year return of 16.22%. Analysts favor the stock, with a consensus rating of Buy, indicating strong confidence in its potential for consistent income and growth.
Pros:
- Strong revenue growth
- Diverse infrastructure portfolio
Cons:
- Moderate underperformance compared to TSX index
- Market volatility risk
5.Hydro One Inc.
H (TSX)
Hydro One Inc. stands out as a pure-play electricity transmission and distribution company, providing a stable business model without exposure to power generation. With a solid dividend yield of 2.41% and impressive returns of 21.97% over the past year and 95.87% over the last five years, it’s an attractive option for investors seeking reliable income and growth. Currently rated B-, Hydro One's low implied volatility of 38% suggests a relatively stable stock environment, making it appealing for those cautious about market fluctuations.
Pros:
- Stable business model
- Strong historical returns
Cons:
- Limited growth opportunities
- Market volatility risk
6.AltaGas Ltd.
ALA-PK.TO (TSX)
Focusing on energy infrastructure, AltaGas Ltd. operates within the natural gas utilities and midstream services sectors. Although it currently offers a 0% dividend yield and has seen a slight decline in returns over the past year (-0.99%) and five years (-1.15%), the company boasts an impressive earnings growth rate of 17.3%, far exceeding the industry average of 5.1%. Analysts have recognized AltaGas with a strong A- rating, reflecting confidence in its long-term growth potential.
Pros:
- Diverse energy infrastructure
- Strong operational capabilities
Cons:
- Negative returns over the past year
- Market volatility risk
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Final Words
As you consider the best utility stocks this July 2026, remember that options like Fortis Inc. may offer solid returns and dividends. Take time to compare these investment opportunities and conduct your own research to make informed decisions that align with your financial goals.
Frequently Asked Questions
Fortis Inc. is a regulated electric and natural gas utility serving 3.5 million customers across the US, Canada, and the Caribbean. It has shown impressive returns, with a 1-year return of 27.74% and a 5-year return of 47.79%, making it an attractive investment option.
Fortis Inc. offers a dividend yield of 3.36877%, distributed quarterly. The next dividend payment is set at $0.6400, reflecting the company's commitment to returning value to its shareholders.
Fortis Inc. has demonstrated strong stock performance with a year-to-date return of 15.71% and a 3-month return of 6.83%. This consistent growth indicates a stable investment in the utility sector.
Investing in utility stocks can involve risks such as regulatory changes, economic downturns, and fluctuations in energy prices. However, they are generally considered more stable than other sectors due to their consistent demand.
Utility stocks like Fortis Inc. typically offer lower volatility and steady dividends compared to more aggressive investments like tech stocks. They are ideal for conservative investors seeking income and stability.
Before investing in Fortis Inc., consider its market cap of $42.04B, dividend yield, and historical performance. It's also important to assess your risk tolerance and investment goals to ensure alignment with this utility stock.
