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.
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.