Fortis Inc

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These days the markets are going upwards where as FTS is heading downward or not going up.
Any specific reason of this stock not going up with the TSX index?
Other energy stocks have also shown some positive trend and I expected better performance of FTS in present scenario and keen to know the root cause.

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Asked on November 27, 2020 11:09 am
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It's pretty key to understand that Fortis is a very defensive utility. In fact, some have essentially compared utility stocks like Fortis and Canadian Utilities to a high grade bond, due to their reliable income.

Fortis did crash in March, but we have to also understand that within a month, it had recovered most of its losses while the TSX Index remained down 25%. To put it in exact numbers, as of March 31st 2020 the TSX was down 25% while Fortis was down only 7%.

Obviously in this type of situation, we can expect Fortis to return less than the Index's recovery from that point onward, it already had a 18% head start.

This isn't a company that's growing very fast. It's not a flashy stock. But, if we look back to March again, a position in Fortis would have reduced the overall volatility in your portfolio, along with providing you with a strong dividend.

This is a stock that will typically provide you with 5-7% in capital appreciation, a 3.5-4% dividend yield and some peace of mind when the markets get rocky.

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Posted by Dan Kent
Answered on November 27, 2020 12:39 pm