1.Hydro One Ltd.
H (TSX)
Hydro One Ltd. is a key player in Ontario's transmission and distribution sector, currently facing challenges following a sudden CEO departure and board changes, which have introduced increased political and regulatory risks. With a modest dividend yield of 2.53%, the stock has delivered impressive performance, achieving a 25.43% return over the past year and an 85.22% return over five years. Despite these factors, the consensus rating remains a Hold, suggesting cautious sentiment among analysts amidst ongoing uncertainties.
Pros:
- Positioned for stability in the Canadian utilities sector
- Strong historical returns
Cons:
- Political and regulatory risks
- Recent CEO exit may impact performance
2.Emera Inc.
EMA (TSX)
Emera Inc. stands out as a reliable choice for income-focused investors, featuring a competitive dividend yield of 4.36% and a robust one-year return of nearly 28%. With a focus on regulated growth in electricity generation, transmission, and distribution, it offers a set-and-forget investment option for those seeking consistent payouts. Analysts generally view it favorably, holding a consensus rating of "Moderate Buy" amid forecasts of steady earnings growth.
Pros:
- Strong dividend yield
- Regulated growth
Cons:
- Recent performance volatility
- High payout ratio
3.Fortis Inc.
FTS.TO (TSX)
Fortis Inc. stands out in the utility sector as a reliable provider of electric and gas services across Canada, the U.S., and the Caribbean. With a solid dividend yield of 3.50% and impressive 1-year and 5-year returns of 21.60% and 39.22%, respectively, this company has demonstrated consistent earnings growth and dependable cash flow. Analysts maintain a neutral outlook on Fortis, highlighting its status as a Dividend King and a potential opportunity for long-term investors in today's market.
Pros:
- Dependable cash flow
- Solid long-term earnings
Cons:
- Market volatility risk
- Lower yield compared to high-yield stocks
4.AltaGas Ltd.
ALA.TO (TSX)
AltaGas Ltd. stands out as a significant player in the energy infrastructure sector, boasting a strong market position among TSX-listed utilities as it heads into 2026. With a solid 1-year return of 19.59% and a remarkable 5-year return of 109.16%, it presents an attractive option for investors looking for growth. Analysts generally view the company favorably, with a B- rating and a "Buy" recommendation from TD Securities, reinforcing its status as a financially healthy choice with consistent revenue growth.
Pros:
- Strong positioning among TSX-listed utilities
- Significant growth in returns
Cons:
- Recent negative short-term performance
- Market volatility risk
5.Capital Power Corporation
CPX.TO (TSX)
Capital Power Corporation stands out in the utilities sector, driven by increasing electricity demand and the ongoing energy transition. With a solid dividend yield of 4.59% and impressive long-term gains of 65.48% over five years, it offers an attractive option for investors seeking reliable income and growth. Analysts remain cautious, with a recent downgrade to a "Hold" rating from Industrial Alliance, yet the stock's momentum suggests potential for further gains.
Pros:
- Key player in the utilities sector
- Benefiting from rising electricity demand
Cons:
- Recent negative short-term performance
- Market volatility risk
6.Canadian Utilities Ltd.
CU (TSX)
Canadian Utilities Ltd. stands out as a reliable investment option for those seeking consistent income, boasting over 50 years of dividend growth and a solid yield of 4.26%. Analysts maintain a "Neutral" consensus on the stock, with a rating of B, indicating that while it’s not a strong buy, it remains a stable choice with a reasonable forward P/E of 16.9 times. With projections of significant revenue and earnings growth by 2028, Canadian Utilities aligns well with investors focused on low-risk utility stocks.
Pros:
- Over 50 years of dividend growth
- Reliable low-risk profile
Cons:
- Moderate growth expectations
- Potential regulatory challenges
Final Words
As you consider your investment options this January, take time to compare the top utility stocks in Canada, such as Fortis Inc., to determine which aligns best with your financial goals. You can explore their performance metrics and dividend yields to make informed decisions that suit your portfolio.
Frequently Asked Questions
Fortis Inc. is a leading electric and gas utility company operating across Canada, the U.S., and the Caribbean. It is known for its dependable cash flow, solid long-term earnings, and consistent top rankings among Canadian utilities.
Fortis Inc. has shown a 1-Year Return of 21.60% and a 5-Year Return of 39.22%. This performance highlights the company's strong growth trajectory over the years.
Fortis Inc. has a dividend yield of 3.50% and distributes dividends quarterly. The next dividend payment is slated for March 1, 2026, at $0.6400.
Fortis Inc. is well-regarded among Canadian utilities due to its consistent earnings and cash flow. When comparing utility stocks, consider factors like market cap, dividend yield, and historical performance to assess which stock aligns best with your investment strategy.
Investing in utility stocks can involve risks such as regulatory changes, economic downturns, and fluctuations in energy prices. While utilities tend to be more stable, it's essential to evaluate how these factors may impact your investment.
Before investing in Fortis Inc., consider your investment goals, risk tolerance, and the company's financial health. Reviewing its historical performance and dividend distribution can also provide insights into its reliability as an investment.
