Investing in Canadian utility stocks offers peace of mind from market volatility and helps you generate big total returns over time. These companies are considered defensive investments because they deliver essential services that households and businesses rely on every day, regardless of economic conditions. Whether markets are strong or under pressure, demand for electricity, natural gas, and water tends to remain steady, giving utilities a level of resilience that many other sectors lack.
This consistent demand supports relatively stable earnings, which is why utility stocks have traditionally appealed to conservative and income-focused investors. Utilities also operate within regulated frameworks that allow them to earn reasonable returns on their investments. These regulations add visibility and predictability to future cash flows, helping to limit earnings volatility over time.
That financial stability has historically enabled Canadian utilities to pay reliable dividends. Looking ahead, rising energy demand driven by electrification, population growth, and ongoing infrastructure development further strengthens the sector’s outlook. As a result, utility companies are well-positioned to continue delivering dependable income alongside long-term capital appreciation, contributing to strong total returns over time.
Against this background, here is a top Canadian utility stock for big total returns.
A top utility stock to consider now
Fortis (TSX:FTS) is one of the most compelling investment opportunities in Canada’s utility sector for investors seeking solid total returns. The utility company focuses on power transmission and distribution, and generates stable revenues from essential services. Moreover, its rate-regulated operating structure and predictable cash flows largely shield it from economic downturns, supporting steady dividend payments and growth.
Thanks to its defensive business model, rate-regulated asset base, and highly predictable cash flows, it has increased its dividend for 52 consecutive years. Moreover, Fortis is well-positioned to maintain its dividend growth streak in the years ahead.
While income investors value Fortis for its consistency, the stock also offers meaningful growth potential. Rising electricity demand supports long-term earnings expansion. Over the past year, Fortis shares have gained more than 23%, reflecting increasing demand, improving market sentiment and solid operating performance. With these tailwinds in place, the stock’s momentum could extend into 2026 and beyond.
When combined with its defensive business and proven dividend performance, Fortis stands out as a leading utility stock with the potential to deliver attractive total returns through both steady distribution and capital appreciation.
Fortis to deliver solid total returns
Fortis appears well-positioned to deliver solid long-term total returns, supported by steadily rising energy demand and its $28.8 billion capital plan over the next five years. This investment program is directed toward transmission and distribution networks and other critical infrastructure assets that will deliver stable and predictable returns. Importantly, most of the capital plan is anchored in regulated projects, which limit earnings volatility, and only a small portion is concentrated in large-scale developments, enhancing its overall executability.
As a result of this investment strategy, Fortis’s consolidated rate base is expected to expand meaningfully, rising from about $42 billion in 2025 to $58 billion by 2030. This implies an average annual rate base growth of 7%, providing a strong foundation for earnings growth over the period. A growing rate base also supports Fortis’s ability to deliver consistent dividend increases, with management targeting annual dividend growth of 4% to 6%.
Beyond its regulated growth profile, Fortis stands to benefit from increases in electricity demand, particularly from energy-intensive sectors such as manufacturing and data centres. These trends could further strengthen long-term growth prospects. At the same time, the company is divesting non-core assets, a strategy that enhances balance sheet strength and reduces overall business risk.
Overall, Fortis is well-positioned to deliver strong total returns over the long run.
