It has been a volatile year for the markets, and while stocks have been rallying in recent weeks, it still has been a fairly lackluster performance; the S&P 500 is up less than 1% while the TSX has risen by nearly 5%. And amid uncertainty, investors have been focusing on safer investments to buy and hold. One of them has been Hydro One Limited (TSX:H).
The utility stock is up around 13% since the start of the year and has soundly been outperforming the market. It’s a good, safe dividend stock to own. And recently, it gave investors reason even more of a reason to add it to their portfolios: a dividend hike.
On May 7, the company declared a quarterly dividend of $0.3331, which was an increase of 6% from its previous quarterly payment of $0.3142. Over the course of a full year, Hydro One stock is now paying its shareholders $1.3324, which equates to a yield of 2.7% That’s an above-average yield given that the average S&P 500 stock pays an average of 1.4%.
Hydro One has consistently posted a profit over the years, and since 2022, the bottom line has been north of $1 billion. The company has grown its operations steadily and there’s minimal risk with this type of investment, making it a suitable option whether you’re looking for a great dividend stock to own or just want to park your money some place safe at a time when the threat of tariffs and trade wars are still weighing on the markets.