There's no question that utility stocks are some of the best and most reliable stocks you can buy, especially right now, as considerable uncertainty lingers in both the stock market and the economy.

However, while utility companies are known for their low volatility and for being some of the most reliable dividend stocks you can buy, they aren't just for risk-averse investors who are nearing retirement.

Utility stocks can play a role in essentially every investor's portfolio as core holdings that help to stabilize your portfolio and offer steady, long-term growth.

So, while investors who are closer to retirement may choose to allocate more of their capital to lower-risk stocks, no matter where you are in your financial journey, a high-quality utility stock can play an essential role.

The question is, of the two best and most popular utility stocks in Canada, Emera (TSX:EMA) and Fortis (TSX:FTS), which is the best stock to buy now?

What are the main differences between Fortis and Emera?

Both Fortis and Emera have a tonne of similarities. However, while their core businesses are the same, there are some considerable differences, which help to illustrate which is the best stock to buy now.

First off, when it comes to dividends, which are one of the main reasons investors buy utility stocks, Fortis has a much longer track record of growth.

In fact, Fortis has the second-longest dividend-growth streak in Canada, at a whopping 51 consecutive years of dividend increases. Emera has increased its dividend for just 17 years in a row.

17 years is still an impressive streak and shows the stability and reliability of Emera's operations, but it's nowhere near as impressive as Fortis.

In addition, in terms of dividend growth, Fortis also gets the edge. For example, according to each company's guidance, Fortis is planning to increase its dividend by 4-6% annually over the next five years. In contrast, Emera is targeting just 1-2% annual increases to its dividend through 2026.

In addition, both companies are in the midst of a significant capital plan, with Fortis investing $26 billion from 2025 through 2029, while Emera is investing $8.8 billion from 2024 through 2026. Furthermore, Emera expects to see higher rate base growth from these investments at 7% to 8% growth annually, compared to a 6.5% compound annual growth rate (CAGR) from Fortis.

However, because Fortis' dividend is currently more sustainable and its payout ratio is more manageable, it can plan to increase its dividend at a much higher pace each year.

Therefore, at the moment it appears as though Fortis is the best utility stock to buy right now of these two, however, as you'll see below, it also depends on your personal preferences and investing goals.

Which is the best utility stock to buy now?

As you can see from the chart below, as low-risk, low-volatility dividend stocks, they both tend to move in unison. However, Fortis tends to be the slightly more efficient stock.

For example, over the last five years, Fortis has earned investors a total return of 32.4% compared to Emera's total return of 24.3%. Furthermore, over the previous 10 years, Fortis's total return is roughly 140%, which is a CAGR of 9.1%, compared to Emera's total return of approximately 126%, which is a CAGR of roughly 8.5%.

However, although Fortis has outpaced Emera for years, and although it should increase its dividend at a higher rate in the near term, the one edge that Emera has is that it's less expensive and offers a higher dividend yield.

For example, Fortis currently trades at a forward price-to-earnings (P/E) ratio of 18.5 times and has a dividend yield of 3.9%. Emera trades at a forward P/E ratio of 17.6 times and has a current yield of roughly 5%.

It's not exactly surprising to see Fortis trade at a premium, given its consistent outperformance of Emera and longer track record of dividend growth.

So, in my view, although Fortis is more expensive, it's the best stock to buy now. However, if you're looking for more value or want to lock in a higher yield, you may elect to choose Emera for your portfolio.