Let’s look at Dominion Resources (D) and NextEra Energy’s (NEE) dividend profiles. Both companies have a strong dividend payment history. Dominion Resources has been increasing its dividends for the last nine consecutive years, while NextEra Energy has been increasing its payouts for the last 11 consecutive years.
Utilities (XLU) generally pay large portions of their earnings to shareholders in the form of dividends. So, a payout ratio near 80% isn’t unusual in the utilities industry. Southern Company (SO) and Duke Energy (DUK) also have payout ratios above 80%.