Fortis (NYSE: FTS) raises dividend 4% and unveils its largest capital plan

Posted by Lauren Steadman on Nov 3rd, 2026

What happened

Fortis Inc. (NYSE: FTS) raised its fourth-quarter common dividend 4% and unveiled a C$32.2 billion capital plan for 2027 through 2031. Chief Executive Officer David Hutchens called it the largest in Fortis history.

The board declared a common dividend of C$0.665 a share, payable Dec. 1 to holders of record Nov. 17. Fortis also extended its guidance for annual dividend growth of 4% to 6% through 2031.

The news came with third-quarter results on Nov. 3. Figures here are in Canadian dollars unless marked US$, as in the company's release.

Key numbers

Metric	Latest	Change	Source
Q3 earnings per common share	C$0.92	from C$0.81, +13.6%	Calculated from SEC 6-K
Q3 adjusted earnings per common share	C$0.92	from C$0.87, +5.7%	Calculated from SEC 6-K
Q3 net earnings to common shareholders	C$474 million	from C$409 million, +15.9%	Calculated from SEC 6-K
2027-2031 capital plan	C$32.2 billion	+C$3.4 billion vs prior plan	SEC 6-K press release
Fourth-quarter common dividend	C$0.665 per share	+4%	SEC 6-K press release
Q3 ATM gross proceeds	C$263 million		SEC 6-K interim financial statements

Read more: Fortis (FTS) company research

What the quarter showed

Net earnings attributable to common shareholders were C$474 million, or C$0.92 a share, up from C$0.81 a year earlier. That is a 13.6% rise in earnings per share by OptimistFi's calculation, but a one-time item flatters it. Revenue rose to C$3.12 billion from C$2.94 billion.

The 2025 quarter carried C$32 million, or C$0.06 a share, of income taxes and closing costs from the September 2025 sale of FortisTCI. Against an adjusted C$0.87 a year earlier, the per-share gain is 5.7%, by OptimistFi's calculation. The 2026 quarter's adjusted earnings equal its reported earnings.

Excluding that item, net earnings rose C$33 million. Fortis credits mainly rate base growth across its utilities. Higher retail electricity sales and the timing of operating costs at UNS Energy also helped. The 2025 sales of FortisTCI and Fortis Belize and higher holding company finance costs held earnings back.

Stock perps: every US stock that trades as a perpetual future, by leverage, live

The bigger capital plan

The new plan is higher than the previous five-year plan. Fortis says the increase is mainly FERC-regulated transmission investment at ITC, tied to the MISO long-range transmission portfolio known as tranche 2.1. That includes a competitive Iowa project awarded to ITC in October, with US$0.5 billion of it in the plan.

Fortis expects the plan to lift midyear rate base from C$45.3 billion in 2026 to C$55.8 billion by 2029 and C$63.9 billion by 2031. That is compound annual growth of 7.7% over three years and 7.5% over five. The company says rate base growth will drive the earnings behind its dividend guidance.

Spending is also running ahead this year. Fortis now expects 2026 capital expenditures of C$6.0 billion, up from C$5.6 billion, largely because major projects at ITC and FortisBC Energy are moving faster.

More opportunities sit outside the plan. ITC estimates US$2.9 billion to US$3.4 billion of added spending on MISO tranche 2.1 projects. The Tilbury Phase 2 LNG expansion would add C$2 billion to C$4 billion, mostly after 2031, depending on market use and a final investment decision. No Phase 2 capital is in the plan.

How Fortis plans to pay for it

Fortis expects to fund the plan mainly from cash from operations and regulated utility debt. It expects its dividend reinvestment plan to support most of the common equity.

In the third quarter it raised part of its equity needs early by issuing US$1.0 billion of junior subordinated notes. It also sold about 3.4 million common shares through its at-the-market program at an average C$77.17 a share. Gross proceeds were C$263 million, or C$260 million after commissions.

Fortis plans to file a new short-form base shelf prospectus and re-establish the at-the-market program in early 2027. The current shelf, filed in December 2024 with a 25-month life, allows up to C$2.0 billion of common or preference shares, subscription receipts or debt securities.

Debt is rising alongside the plan. Long-term debt stood at C$33.57 billion on Sept. 30, against C$30.72 billion at Dec. 31, 2025. Cross-currency swaps maturing in 2029 convert C$500 million of 4.43% unsecured senior notes into US$391 million of 4.34% debt.

Why it matters

OptimistFi has argued that Fortis compounds earnings by turning approved capital spending into predictable returns, provided regulators and debt markets keep funding it on acceptable terms. A larger plan, 7.5% rate base growth and dividend guidance extended to 2031 fit that view, so the filing strengthens the case.

The quarter's headline gain is smaller than it looks. Stripping out the 2025 charge cuts the per-share increase to 5.7%. The share count also rose to 515.8 million on Sept. 30 from 507.3 million at Dec. 31, 2025. The release says the dividend reinvestment and at-the-market plans affected the change in earnings per share.

Much of the growth outside the plan depends on regulatory approvals, request-for-proposal processes, final investment decisions and financing. A bigger plan means regulators must approve more capital and investors must fund more. It does not guarantee realized returns.

What's next

The nearest test is Arizona. An Arizona Corporation Commission judge recommended an allowed return on equity of 9.65% and a 55.5% common equity component for Tucson Electric Power, with new rates proposed from Dec. 1. Commission approval is anticipated later in November.

Approval on those terms would support the case that regulators will reward capital spending. A weaker outcome would test it. A FortisAlberta decision on a true-up of about C$130 million is expected in the fourth quarter, with no earnings impact anticipated.

Fortis also plans to file its new shelf prospectus and bring back the at-the-market program in early 2027.