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Top Utilities’ Historical Dividend Growth

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Nov. 20 2020, Updated 3:46 p.m. ET

Historical dividend growth

On average, utilities increased their dividend per share ~4% compounded annually in the last five years. In comparison, NextEra Energy (NEE) managed to raise its dividend per share more than 10% compounded annually during the same period—more than double the industry average.

Duke Energy’s (DUK) historical dividend growth was close to 3% compounded annually. In the past five years, Southern Company’s (SO) dividend growth was 3.4% compounded annually.

Dominion Energy (D) also stands tall in terms of the dividend growth. Dominion Energy raised its dividend per share 7.5% compounded annually in the last five years.

The main driver of these utilities’ dividend increases was their earnings growth. NextEra Energy and Dominion Energy are among the fastest-growing utilities in the sector (XLU), while Southern Company and Duke Energy’s earnings grew 4%–6% annually—in line with the industry average.

To learn about utilities’ recent performance and how they’re placed for the future, read Where Utility Stocks Might Go from Here.

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