Fortis shares have fallen more than 5% from their late-July peak as investors used the utility's modest second-quarter results to lock in gains.
Those results were described as okay rather than weak, but the reaction suggests money is rotating away from defensive dividend names and toward higher-risk stocks.
Fortis's 0.43 beta underscores its lower correlation to the broader market, a trait that can lag in a bull run but appeal if volatility returns.
With the TSX still climbing and risk appetite improving, the pullback highlights how conservative income stocks can slip out of favor even without a major operational setback.