The Ideal 3.3% TFSA Dividend Stock Paying Constant Cash

Fortis Inc. (TSX:FTS) is one of North America’s largest utilities. It’s also one of the most reliable dividend stocks with the longest track record of predictable, growing dividends. This is what makes Fortis stock an ideal choice for investor TFSA accounts.

Let’s look into it.

The ideal utility stock

With five 100% regulated utilities in Canada, the U.S., and the Cayman Islands, Fortis stock is well-set up to continue to provide TFSA investors with quarterly cash dividend payments. These dividend payments have a long history of over 52 years of consecutive increases, and they are backed by the company’s predictable, steadily growing cash flows.

The economic and geopolitical backdrop is uncertain. Ideally, TFSA dividend income should be certain. This is the gift that Fortis can give to investors – certain, predictable dividend income in every economic and geopolitical environment.

In the last 52 years, Fortis stock’s dividend was increased. In the last 20 years, Fortis stock posted a cumulative total shareholder return of approximately 630%. This was approximately 60% higher than the S&P/TSX Composite Index’s return. In the last three years, Fortis’ annual dividend per share increased at a compound annual growth rate (CAGR) of 6.5% to $3.53. Looking ahead, the company is forecasting a 4% to 6% annual dividend growth rate until the year 2030.

Fortis – Q1 results

In Fortis’ latest results, the company reminded me once again why it’s the best Canadian stock to own in uncertain and volatile times. Adjusted earnings per share (EPS) came in at $0.99, which was consistent with the prior year’s result and in line with expectations. Fortis’ strong results continue to be driven by strong rate base increases and strong cost discipline.

Looking ahead, Fortis stock continues to execute its five-year capital plan. This plan will see the company invest $28.8 billion from 2026 to 2030.  This growth plan is a highly executable, low risk one that will support rate base growth of 7% over this time period.

But it doesn’t stop there. Long-term plans are also being developed to help take Fortis into new and growing energy markets as the demand for energy continues to accelerate. For example, Fortis will continue to invest in cleaner burning natural gas and liquified natural gas (LNG) facilities as North America continues to move away from coal toward natural gas.

A TFSA dividend stock with a respectable yield

Fortis is currently yielding a respectable 3.3%. Considering that Fortis’ yield is the closest we can get to a risk-free return, this is pretty fantastic. The expected annual dividend growth will add to this yield over time. Adding Fortis stock to your TFSA gives you these constant cash dividend payments tax-free.

The bottom

As a utility stock that is pretty much sheltered from a lot of the market volatility, Fortis stock is truly in a unique position. In a world where downside volatility seems increasingly likely, the value of this type of stock cannot be overstated.

Investors should therefore seriously consider buying this TFSA dividend stock for added portfolio stability and income.

The post The Ideal 3.3% TFSA Dividend Stock Paying Constant Cash appeared first on The Motley Fool Canada.

Should you invest $1,000 in Fortis right now?

Before you buy stock in Fortis, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Fortis wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $18,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 94%* – a market-crushing outperformance compared to 85%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of April 20th, 2026

More reading

• Safer Dividend Stocks to Buy With $20,000 Right Now
• Top Canadian Stocks to Buy With $20,000 in 2026
• Market Crash Plan: 3 Canadian Stocks I’d Want on My Watchlist
• 3 Canadian Dividend Stocks Perfectly Suited for Retirees
• The TFSA Number You Need to Hit Before Calling It Quits

Fool contributor Karen Thomas has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.