1.Fortis
FTS.TO (TSX)
Fortis (FTS) stands out as a leading Canadian utility, known for its strong cash flow from electricity and gas distribution across North America, alongside a consistent dividend growth track record. With a current yield of approximately 3.23%, the company has delivered impressive returns, boasting a 1-year total shareholder return of 29.18% and a remarkable 5-year return of 90.71%, highlighting its robust growth momentum.
Pros:
- Consistent dividend growth over decades
- Strong cash flow from electricity and gas distribution
Cons:
- Market volatility risk
- Dependence on regulatory environment
2.Brookfield Infrastructure Partners
BIP.UN (TSX)
Brookfield Infrastructure Partners (BIP.UN) stands out in the TSX utilities sector, offering a robust presence and diversified exposure for investors. With a commendable dividend yield of 4.52% and a solid 1-year return of 19.38%, BIP has proven itself as a reliable choice for income-focused investors seeking stability. Analysts have mixed views, with RBC Capital maintaining an "Outperform" rating while Jefferies suggests a "Hold," reflecting a consensus rating of "Hold" overall.
Pros:
- Strong presence in the TSX utilities sector
- Diversified exposure and reliable income
Cons:
- Market volatility risk
- Dependence on global economic conditions
3.Emera
EMA.TO (TSX)
Emera (EMA) stands out as a reliable utility stock on the TSX, often recognized among Canada's best utilities for 2026. With a solid dividend yield of 4.32% and impressive returns of nearly 20% over the past year, it appeals to investors seeking consistent payouts from financially healthy companies. Though analyst ratings vary—with CIBC downgrading to Neutral—the overall outlook remains positive, particularly for those prioritizing dependable operations in electricity and gas.
Pros:
- Dependable operations in electricity and gas
- Frequently ranked among top Canadian utilities
Cons:
- Potential regulatory challenges
- Market competition in energy sector
4.Canadian Utilities
CU-X.TO (TSX)
Canadian Utilities (CU) stands out as a reliable investment in the utility sector, boasting a commendable track record of over 50 years of consistent dividend increases. With a robust dividend yield of 5.53%, it remains an appealing option for those seeking regular income through regulated assets and infrastructure growth. Although its one-year return reflects a decline of 9.71%, the company is well-positioned for long-term stability and growth, supported by a solid mid-year rate base projected to expand significantly in the coming years.
Pros:
- Over 50 years of dividend increases
- Growth from regulated assets and infrastructure
Cons:
- Recent negative 1-year return
- Higher payout ratio concerns
5.AltaGas
ALA.TO (TSX)
AltaGas (ALA) stands out as a strong investment opportunity, combining regulated utility operations with midstream energy assets, which enhances its growth potential. With a solid dividend yield of 2.69% and impressive 1-year and 5-year returns of 32.47% and 145.71%, respectively, it has garnered a favorable analyst rating of "Buy" from TD Securities. Investors should note that the average analyst price target suggests a potential increase of 2.75% from its current level, indicating a positive outlook for this high-quality pick.
Pros:
- Combines regulated utilities with midstream energy assets
- High-quality pick with attractive yields
Cons:
- Exposure to energy market fluctuations
- Regulatory risks in utility operations
6.Hydro One
H.TO (TSX)
Hydro One stands out as the largest electrical utility in North America, boasting a quasi-monopoly in Ontario's transmission and distribution markets. This strategic positioning supports stable earnings growth, complemented by a dividend yield of approximately 2.53%. With impressive returns of 25.01% over the past year and a remarkable 116.96% over five years, it’s an attractive option for investors seeking reliable income and long-term growth.
Pros:
- Largest electrical utility in North America
- Stable earnings growth
Cons:
- Quasi-monopoly risks
- Regulatory scrutiny
Final Words
As you consider the best utility stocks this March 2026 in Canada, remember to evaluate options like Fortis for their strong performance and consistent dividends. Take time to compare these opportunities and conduct your own research to make informed investment decisions.
Frequently Asked Questions
Fortis is considered a top utility stock due to its consistent dividend growth over decades and strong cash flow from electricity and gas distribution across North America. With a market cap of $39.77 billion, it has demonstrated substantial performance with a 1-Year Return of 22.47% and a 5-Year Return of 57.67%.
As of March 2026, Fortis has a dividend yield of approximately 3.23%. This yield reflects the company's commitment to returning value to its shareholders through regular quarterly distributions.
Fortis has shown impressive performance over the last year with a return of 22.47%. Additionally, its 3-Year and 5-Year Returns stand at 43.82% and 57.67%, respectively, indicating strong growth potential.
Investing in utility stocks, including Fortis, can carry risks such as regulatory changes, economic downturns, and fluctuating energy prices. However, they are generally considered more stable compared to other sectors due to their essential services.
Utility stocks are often seen as a safer investment option with stable dividends, making them appealing for income-focused investors. However, they may offer lower growth potential compared to tech or other high-growth sectors.
When selecting utility stocks, consider factors such as dividend yield, historical performance, market cap, and the company’s regulatory environment. It's also important to evaluate their cash flow stability and growth prospects.
