How Duke Energy’s Dividend Growth Has Trended

As we discussed in the earlier part, Duke Energy’s (DUK) dividend growth rate in the last five years was well below the industry average. However, it plans to increase its per share dividend by 4% to 6% annually for the next few years, in line with the industry average.

Duke Energy’s peers and regulated utility giants Southern Company (SO) and Xcel Energy (XEL) also aim to increase their dividends by similar levels.

The largest utility by market capitalization in the sector, NextEra Energy (NEE), aims for dividend growth twice the industry average (XLU). NextEra Energy is targeting 12% to 14% dividend growth through at least 2018. It has increased its dividends by 9.6% compounded annually in the last five years.

The extraordinary dividend growth by NextEra Energy is expected to be driven by its above-average earnings growth. To know more about NextEra Energy’s dividend profile, read Analyzing NextEra Energy’s Dividend Yield.

Dominion Energy (D) is also one of the fastest-growing utilities among industry giants. It is targeting higher-than-average per share dividend growth of 8% annually for the next few years. You can learn about Dominion Energy’s dividends in Is Dominion Resources the Best Dividend Stock among Utilities?