A Solid Canadian Dividend Growth Stock to Buy and Hold Forever

If you’re looking for a quality dividend stock, it’s important to consider a company’s future as well as its track record for paying dividends. And one stock that is particularly attractive for Canadian investors is utility giant Fortis (TSX:FTS)(NYSE:FTS).

Last year, the company announced it would be increasing its dividend by 4.4%. And with the increase, that has extended the company’s streak of raising its payouts to an impressive 50 consecutive years, making it one of the best dividend growth stocks to own. And the best part for investors is that management forecasts even more dividend growth ahead. Fortis’ CEO David Hutchens says that, “our sustainable regulated growth strategy is focused on delivering cleaner energy that remains affordable and reliable for our customers while supporting annual dividend growth of 4-6% through 2028.”

The company continues to invest into more capital projects to grow its earnings, which, in turn, will allow it to pad its dividend even further. With a bright future ahead and more expansion opportunities in North America to pursue, Fortis can make for an ideal investment to buy and hold.

Today, the stock yields an impressive 4.4%. That means that if you wanted to collect $1,000 in dividend income from Fortis, you would need to invest approximately $22,730.

Year to date, shares of Fortis are down a modest 2% as investors haven’t been overly bullish on dividend stocks with interest rates remaining high, but that could change as more cuts take place. With shares of Fortis trading at just 17 times the company’s trailing earnings, this also makes for a good value buy.

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