Traders trying to make investments $20,000 in a secure dividend inventory may contemplate investing within the utility sector. Whereas no inventory is totally risk-free, utility corporations are seen as defensive as a result of they supply important companies. No matter whether or not the financial system is booming or slowing, demand for electrical energy, pure gasoline, and water tends to stay steady, giving utility corporations the resilience to generate regular returns.
One other essential issue to focus on is that utility shares profit from their regulated enterprise mannequin. This working construction allows these corporations to generate predictable, rising earnings, serving to scale back volatility of their money flows. This monetary stability has traditionally supported constant dividend funds, making Canadian utility corporations a dependable supply of revenue for long-term traders.
The sector’s outlook additionally stays encouraging. Rising vitality demand from electrification developments, inhabitants progress, and ongoing infrastructure funding is anticipated to help future progress. General, these elements place utility corporations to proceed delivering reliable dividends together with the potential for long-term capital appreciation.
With that context, here’s a comparatively safer Canadian dividend inventory to purchase proper now.
A high dividend inventory to contemplate now
Fortis (TSX:FTS) is likely one of the most dependable shares in Canada’s utility sector for traders in search of worry-free revenue for many years. Fortis focuses on energy transmission and distribution and generates steady revenues. Furthermore, its rate-regulated working construction and predictable money flows comparatively protect it from financial downturns, supporting regular dividend funds and progress.
Because of its defensive enterprise mannequin and rising money circulation, Fortis has elevated its dividend for over 5 a long time. In November 2025, Fortis raised its dividend by 4.1%, extending its streak to 52 consecutive years of dividend progress. Furthermore, it presents a well-covered yield of about 3.5%.
Past revenue, Fortis has additionally delivered stable capital features. Over the previous 12 months, its shares have risen about 23%, pushed by sturdy working outcomes, enhancing market sentiment, and rising electrical energy demand. With its resilient enterprise mannequin and steadily increasing money circulation, Fortis seems well-positioned to proceed rewarding shareholders by means of 2026 and past.
Fortis to lift dividend by 4% to six%
Fortis is well-positioned to increase its lengthy monitor file of dividend will increase, supported by a defensive enterprise mannequin, low-risk earnings, and a a $28.8 billion capital funding plan scheduled over the following 5 years.
Fortis’s capital plan focuses on regulated utility tasks. By concentrating capital spending on regulated belongings and avoiding execution dangers related to giant, advanced growth tasks, the corporate is increasing its low-risk earnings base.
As these investments are deployed, Fortis’s consolidated charge base is projected to develop considerably, from roughly $42 billion in 2025 to about $58 billion by 2030. The rising charge base will drive its earnings and allow the corporate to ship annual dividend progress within the 4% to six% vary.
Fortis may also profit from the rising electrical energy demand from energy-intensive industries, together with manufacturing and knowledge centres. In the meantime, the corporate’s ongoing divestment of non-core belongings is strengthening the steadiness sheet.
In abstract, Fortis inventory presents stability, regular dividend revenue, and progress, making it a comparatively safer inventory to purchase proper now.