Dividend Growth Strategy: Why ASX Limited and Fortis are 2026 Value Plays

The investment landscape in March 2026 has been defined by a stark divergence between high-flying AI-driven growth and the steady, often overlooked performance of dividend aristocrats. As the broader indices grapple with valuation peaks, seasoned analysts are identifying a significant opportunity in infrastructure plays that have been unfairly discounted by short-term market sentiment. Two primary examples emerging from recent market intelligence are ASX Limited in Australia and Fortis Inc. in Canada. Both companies represent the quintessential buy-and-hold candidates, offering monopolistic or highly regulated market positions that provide a defensive buffer against economic cyclicality while ensuring consistent capital return to shareholders.

ASX Limited, the operator of Australia’s primary securities exchange, currently presents a compelling valuation case. Historically, the exchange has benefited from a near-monopoly on listing, trading, and clearing services within the Australian financial ecosystem. However, recent sentiment has been dampened by regulatory hurdles regarding its long-term infrastructure replacement projects and the rise of niche alternative trading platforms. This has pushed the stock’s price-to-earnings multiple toward the lower end of its ten-year range. For the long-term investor, this represents an entry point into a business with high barriers to entry and a robust payout policy that has historically supported a reliable dividend yield. The exchange’s role as a gatekeeper to Australia’s vast superannuation-driven capital markets ensures that its long-term cash flow remains tied to the structural growth of the domestic economy rather than short-term market fluctuations.

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For instance, an investor buying Fortis or ASX today at a 4% yield could see their effective yield double within a decade if the companies maintain their historical 5-6% annual growth rates.

Across the Pacific, Fortis Inc. serves as the Canadian counterpart in this dividend growth thesis. Fortis has achieved what few companies globally can claim: over 50 consecutive years of annual dividend increases, officially cementing its status as a Dividend King. Operating primarily as a regulated utility with assets spread across Canada, the United States, and the Caribbean, Fortis generates approximately 99% of its earnings from regulated sources. This provides a level of predictability that is highly prized during periods of macroeconomic uncertainty. The company’s current valuation discount is largely a byproduct of the interest rate environment of the mid-2020s, which saw utilities lose favor as bond proxies. However, with Fortis’s aggressive $25 billion capital expenditure plan aimed at grid modernization and renewable integration, the company is well-positioned to grow its rate base and its dividend distributions through the end of the decade.