Then and Now – Fortis
Welcome to another Then and Now post, a continuation of my series where I revisit some older blogposts and either rip them to shreds (because my thinking has changed on such subjects) or I’ll confirm my position on various personal finance topics or specific investments.
You can check out my previous posts in this series here:
Today’s post is about a Canadian dividend paying stud I’ve owned for many years now: Fortis (FTS).
- I started writing about this stock some seven-plus years ago. You can see where I’ve referenced Fortis in these older articles here:
- In 2009, I was transitioning out of big bank mutual funds and I started looking at various Canadian dividend paying stocks to buy and hold. Fortis was one of them. I found the dividend history of Fortis, like other stocks I continue to hold in my portfolio, very appealing. I still do!
- In mid-2011, I recall buying Fortis between $30-$31 per share. The dividend payment back in mid-2011 was $1.16 per year or $0.29 per quarter.
- Like other blue-chip Canadian stocks, I also bought Fortis (FTS) because I found many Canadian broad market ETFs (examples include but not limited to XIC, VCN, VCE, ZCN) and Canadian dividend ETFs (such as VDY, XIU, among others) own this stock. Look at this post and you’ll see some other companies in this theme such as Canadian banks and pipelines.
- At the time of this post, the stock is now trading just over $42 per share. Just so you know, for investors that would have bought and held this stock since 2005, their share price would have doubled to date. Oh yeah, you would have doubled your dividend income as well during the same period.
- I have no intention of selling this stock. Buy and hold and reinvest all dividends paid to earn more shares commission-free every quarter.
When it comes to investing, boring can work wonders. Dividends are increasing every month thanks to one of these stocks. I’m optimistic our basket of Canadian and U.S. stocks, along with some low-cost ETFs, will continue to grow over time so we can reach semi-retirement in the coming 5-10 years. Only time will tell if we are right. 🙂
What are your thoughts about my approach to buy and hold Fortis? Do you own Fortis directly or via an ETF? What are some of your favourite stocks to buy and hold? Thanks for reading and sharing.