Utility stocks are some of the best long-term holdings that investors can buy. In fact, you might say that some of those utility stocks are smart buys for Canadians.

Here's a look at some of those utility stocks to buy this month and why utilities are such great holdings.

Why utilities belong in your portfolio

Utilities offer investors a great balance between generating a reliable income and providing some growth. This can be traced back to the lucrative business model that they adhere to.

In short, utilities provide a necessary service for which they are compensated for. That compensation is outlined in long-term, regulated contracts that span decades.

In other words, as long as utilities continue to provide that necessary service, they generate a reliable revenue stream. And it's that reliable revenue stream that allows utilities to invest in growth and payout some very juicy dividends.

So, then, what utility stocks are smart buys for your portfolio?

Fortis: A growth-focused top pick

Fortis (TSX:FTS) is one of the largest utility stocks in North America. The company boasts a whopping 10 operating regions that cover parts of the U.S., Canada, and the Caribbean.

Fortis breaks the mould of the typical utility stock. Specifically, Fortis is constantly investing in growth initiatives that allow it to expand to new markets. Most recently, this includes a whopping $26 billion capital program spanning the next several years.

That initiative looks to expand its rate base to $53 billion within five years and includes both upgrades to existing facilities as well as new assets coming online.

That capital program also includes Fortis's plan to continue growing its dividend. Specifically, Fortis has provided investors with an incredible 51 consecutive years of dividend increases and plans to continue that cadence.

The latest update has Fortis continuing to provide 4-6% increases to that dividend through 2029.

That fact alone makes Fortis one of the smart buys for any portfolio.

Hydro One: A solid option to consider now

Hydro One (TSX:H) is another smart buy that should be on investor radars. For those unfamiliar with the stock, Hydro One is an electricity transmission and distribution service provider.

The company is one of the largest electric utilities on the continent and by far the largest transmitter and distributor in Ontario. In fact, Hydro One accounts for 92% of Ontario's transmission capacity.

And like other utilities, the overwhelming majority of Hydro One's business is rate-regulated. This means that the company generates a reliable revenue stream that leaves ample room for both growth and dividends.

Speaking of dividends, Hydro One offers investors a quarterly dividend that currently carries a yield of 2.77%. Like Fortis, Hydro One provides investors with an annual uptick to that dividend, with a streak that extends nearly a decade.

In short, investors looking for one of the smart buys to consider this month should consider buying Hydro One.

The smart buys that every investor needs

No stock, even the most defensive, is without some risk, and that includes the utility stocks mentioned above. Fortunately, the above stocks offer a defensive moat, reliable revenue streams, and juicy yields.

This makes them some of the smart buys that, in my opinion, should be core holdings in any well-diversified portfolio.