Among the top utilities, Consolidated Edison (ED) has one of the longest dividend-increasing streaks. The utility has increased its dividend per share for 44 consecutive years. Currently, Consolidated Edison trading at a dividend yield of 3.8%, while Xcel Energy (XEL) is trading at a yield of 3.2%—close to broader utilities’ average dividend yield. Xcel Energy increased its dividend per share for the last 15 consecutive years.
Xcel Energy’s dividends have risen at a compound annual growth rate of 6.4% in the last five years. On average, utilities (XLU) at large have raised their dividends ~4.0% during the same period. In the last five years, Consolidated Edison’s dividends grew ~3% compounded annually. Although the growth is low compared to other utilities in the sector, Consolidated Edison’s consistent dividend increase over a long period makes it a noteworthy name among utilities.
Xcel Energy’s management expects its EPS and dividends to grow ~6% for the next few years—marginally higher than utilities (XLU) at large. In comparison, Consolidated Edison’s dividend growth is expected to be close to 3%, according to analysts’ estimates.
PPL (PPL) offers a dividend yield of 5.5%—the highest among the S&P 500 Utilities. Regulated utility giants Duke Energy (DUK) and Southern Company (SO) are trading at dividend yields of 4.6% and 5.4%, respectively. All three of the utilities had a dividend growth rate that was lower than utilities’ average in the last five years.