Investors Rush to Fortis and Enbridge Amid TSX Record Highs

UPDATE: As the Toronto Stock Exchange (TSX) continues to reach new heights, savvy investors are flocking to two major Canadian dividend stocks: Fortis and Enbridge. With the recent Bank of Canada interest rate cut on September 17, 2025, both companies are positioned for significant growth, making now the perfect time to invest for reliable passive income.

Fortis, currently trading near $70 per share, has surged nearly 18% this year, nearing its 12-month high. The central bank’s shift in focus from combating inflation to stimulating the economy has bolstered investor confidence. This change allows utility stocks like Fortis to leverage lower borrowing costs for extensive development projects.

Fortis is set to embark on a massive $26 billion capital program, aiming to elevate its rate base from $39 billion in 2024 to $53 billion by 2029. An updated five-year financial outlook is anticipated with the release of their Q3 2025 results. The company projects annual dividend increases of 4% to 6%, supported by cash flow from new assets. Notably, Fortis has increased its dividend for an impressive 51 consecutive years, currently offering a dividend yield of 3.5%.

Meanwhile, Enbridge, which boasts a 5.4% dividend yield, has also seen a robust rally over the past year. Like Fortis, Enbridge utilizes debt for growth, making the recent interest rate reduction advantageous. The company is advancing its $32 billion capital program and recently acquired three natural gas utilities in the United States for US$14 billion, solidifying its status as North America’s largest natural gas utility operator.

Enbridge is additionally involved in a proposed oil pipeline project to connect Alberta producers to the northern coast of British Columbia, enhancing Canada’s energy independence. The potential partnership opportunities in this ambitious project only add to Enbridge’s attractiveness as an investment.

Both Fortis and Enbridge represent strong options for investors looking to build a passive income portfolio, particularly in the wake of favorable economic conditions following the Bank of Canada’s recent policy shifts.

Investors are urged to act quickly as these stocks are poised for growth, presenting an excellent opportunity to secure future dividends. Now is the time to consider adding Fortis and Enbridge to your investment strategy, as they continue to thrive in a changing economic landscape.

Stay tuned for more updates as these developments unfold. The time to act is NOW!