Expected dividend growth
Xcel Energy’s (XEL) EPS has increased at a CAGR (compound annual growth rate) of 6.0% in the last decade or so. It derives almost all its earnings from regulated operations, leading to stable earnings and dividends. Xcel Energy’s management expects its EPS and dividends to grow at similar levels for the next few years, marginally higher than that of utilities (XLU) at large.
NextEra Energy (NEE), the biggest utility by market cap, offers the highest potential dividend growth of ~13.0% through 2020—considerably higher than the industry average. Its superior earnings growth is expected to fuel its higher dividend growth.
Among the top utilities, American Electric Power (AEP) has one of the longest dividend payment histories. To learn more, please read American Electric Power Declares Dividend for 433rd Quarter.