Recent comment in The Globe and Mail While Fortis may be a “boring, old utility,” Ms. Robitaille says investors are attracted to its dividend. She also views the electric and gas utility, which operates in the United States, Canada and the Caribbean, as a safe and stable company that is expected to benefit from the transition to clean energy.
With about two-thirds of its business in the U.S., Ms. Robitaille believes Fortis will especially benefit from a Joe Biden administration’s focus on renewables, including a potential for grid expansion that ties in more wind and solar.
The company also has the potential to pass the costs related to these initiatives on in the form of increased rates, “which will support its annual targeted growth of 6 per cent for both its business and its dividend,” she says.
Overall, Ms. Robitaille believes utilities such as Fortis are well positioned to capture the increased amount of investor money that’s shifting from traditional energy into other, more environmentally friendly parts of the sector.
(The article features comments from Michelle Robitaille, managing director of Canadian equities at Gordon Capital LP.)