Fortis (NYSE:FTS) Plans C$0.64 Quarterly Dividend

Key Points

• Fortis announced a quarterly dividend of C$0.64 per share, payable September 1 to shareholders of record on August 19. The dividend implies an annualized payout of approximately C$1.88 and a 4.4% yield.
• Fortis has raised its dividend for five consecutive years, while its 73.4% payout ratio suggests the current dividend is covered by earnings. Analysts expect a lower future payout ratio of 68.4% based on projected earnings.
• Fortis shares opened at $57.62, down 1.2%, and remain near their 12-month high of $59.40. In its latest quarter, the company reported EPS of $0.72, beating estimates, though revenue of $2.45 billion fell short of expectations.

Fortis (NYSE:FTS - Get Free Report) announced a quarterly dividend on Wednesday, July 29th. Shareholders of record on Wednesday, August 19th will be given a dividend of 0.64 per share by the utilities provider on Tuesday, September 1st. This represents a c) dividend on an annualized basis and a yield of 4.4%. The ex-dividend date of this dividend is Wednesday, August 19th.

Fortis has decreased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 5 years. Fortis has a payout ratio of 73.4% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Fortis to earn $2.75 per share next year, which means the company should continue to be able to cover its $1.88 annual dividend with an expected future payout ratio of 68.4%.

Fortis Stock Down 1.2%

Shares of NYSE FTS opened at $57.62 on Thursday. The company has a current ratio of 0.49, a quick ratio of 0.41 and a debt-to-equity ratio of 1.25. The stock has a market capitalization of $29.43 billion, a PE ratio of 23.42 and a beta of 0.43. The stock's fifty day simple moving average is $56.98 and its two-hundred day simple moving average is $56.14. Fortis has a 12-month low of $48.53 and a 12-month high of $59.40.

Fortis (NYSE:FTS - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The utilities provider reported $0.72 EPS for the quarter, topping the consensus estimate of $0.70 by $0.02. The firm had revenue of $2.45 billion during the quarter, compared to analyst estimates of $2.56 billion. Fortis had a return on equity of 7.25% and a net margin of 14.21%.During the same period in the previous year, the company posted $1.00 EPS. As a group, analysts expect that Fortis will post 2.58 EPS for the current fiscal year.

Fortis Company Profile

Fortis Inc is a Canadian diversified electric and gas utility holding company headquartered in St. John's, Newfoundland and Labrador. Through a portfolio of regulated utility subsidiaries, the company develops, owns and operates electricity and natural gas transmission, distribution and generation assets. Fortis serves customers across multiple jurisdictions in Canada, the United States and the Caribbean, focusing on the delivery of safe, reliable energy to residential, commercial and industrial users.

The company's core activities include operation and maintenance of transmission and distribution networks, ownership of generation facilities, and investment in grid modernization and system resilience.

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