Fortis and Emera are both diversified, regulated-utility holding companies with long histories of annual dividend increases, and it is tempting to file them under the same "boring, reliable utility" heading. Their most recent quarters show a real point of difference worth naming directly: the two companies are guiding to meaningfully different dividend growth rates, and one is actively simplifying its portfolio while the other is expanding.
Data as of Q1 2026: Fortis reported May 6, 2026; Emera reported May 8, 2026.
This post is a comparison, not a recommendation to buy, hold, or avoid either company.
Fortis (FTS)
Fortis reported common equity earnings of $501 million and EPS of $0.99, roughly flat year-over-year, on revenue of $3.4 billion. The company deployed $1.4 billion in capital against a $28.8 billion five-year plan, targeting roughly 7% average annual rate base growth through 2030. Fortis reaffirmed dividend growth guidance of 4% to 6% annually through 2030. Morningstar DBRS confirmed its credit rating at A (low), stable outlook.
Emera (EMA)
Emera reported adjusted EPS of $1.37, up 7% year-over-year, with adjusted net income of $415 million. Reported EPS, by contrast, was $1.85, down from $1.96 a year earlier — a reminder that adjusted and reported figures can move in opposite directions in the same quarter, and the adjusted figure is generally the more comparable one for tracking underlying performance.
Emera's dividend is $0.7325 per share, marking 19 consecutive years of increases, but its guided dividend growth rate is only 1% to 2% annually — notably lower than Fortis's 4-6% guidance. The company's 2026 capital plan is $4.0 billion, with roughly $20 billion planned through 2030, and management stated it is on track to exceed its 5-7% adjusted EPS growth guidance in 2026. Approximately 72% of Emera's adjusted net income comes from its Florida operations (Tampa Electric and Peoples Gas).
The portfolio simplification underway at Emera
Emera has agreed to sell Grand Bahama Power Company and New Mexico Gas Company — a deliberate narrowing of its geographic and business footprint. Fortis, by contrast, is in expansion mode, including capacity additions at its ITC transmission subsidiary driven partly by data-center demand. This is the clearest structural difference between the two companies this quarter: Emera simplifying, Fortis growing its footprint.
Reading the two side by side
| Metric | Fortis (FTS) | Emera (EMA) |
|---|---|---|
| Guided dividend growth rate | 4-6% annually through 2030 | 1-2% annually |
| Dividend increase streak | Multi-decade (ongoing) | 19 consecutive years |
| Current strategic direction | Expansion (rate base + ITC capacity) | Simplification (divesting 2 assets) |
The dividend growth guidance gap is the single most important number in this comparison — Fortis is guiding to two to four times Emera's own stated growth rate. That is not a reason to dismiss Emera; a 1-2% dividend growth rate paired with active portfolio simplification can be a deliberate near-term trade-off while the company completes its divestitures and potentially re-accelerates growth afterward. It is, however, a concrete, checkable difference between two companies often mentioned in the same breath.
What each company's quarter suggests about its current phase
Fortis's quarter fits a company mid-expansion, spending toward a rate base target that supports its higher dividend growth guidance. Emera's quarter fits a company in an active simplification phase — divesting non-core international and unregulated assets, at the cost of near-term dividend growth, with management indicating 2026 EPS growth is tracking ahead of its own 5-7% guidance despite the slower dividend growth rate.
Comparing the two directly
The Dividend Compare Engine lets you place FTS and EMA side by side using your own yield and dividend-growth-rate assumptions, making the 4-6% vs. 1-2% guidance gap concrete in dollar terms for your own position size.
Takeaway
Fortis and Emera are both multi-decade Canadian dividend-growing utility holding companies, but their current guidance and strategic direction differ meaningfully: Fortis guides to 4-6% annual dividend growth while expanding its rate base and transmission capacity, while Emera guides to just 1-2% annual dividend growth while actively divesting international and unregulated assets to simplify its portfolio. Whether Emera's simplification phase sets up faster growth later, or whether Fortis's higher current guidance justifies its expansion-phase capital spending, is the open due-diligence question for each, respectively.
> This post analyzes publicly available financial information for educational purposes. It is not investment advice and does not recommend buying, selling, or holding any security. Figures reflect the most recently available quarterly report as of the date noted above and may not reflect current conditions.
--- *This content is for informational purposes only and does not constitute licensed financial advice. Tax rules and contribution limits are accurate as of 2026 and may change. Consult a qualified financial advisor before making investment decisions.*
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