In the last five years, American Electric Power (AEP) increased its per share dividend by 5.4% compounded annually, which was more or less in line with the industry average. AEP is expected to increase its dividends by 5% to 7% per year for the next few years, influenced by its earnings growth around similar levels. Utilities (XLU) at large are aiming for dividend growth of 4%–6% per year.
Peer Consolidated Edison (ED) managed to increase its dividends by 3% compounded annually in the last five years. With its 45 years of consecutive dividend increase, Con Edison has one of the longest streaks of dividend increases among top utilities. To learn more, read All You Need to Know about Consolidated Edison’s Dividend Profile. Exelon Corporation’s (EXC) dividends in fact decreased by 1% in the last five years.
NextEra Energy (NEE) and Dominion Energy (D) are some of the fastest-growing utilities in the country. Both offer superior potential dividend growth. NextEra Energy expects its dividends to grow 13% per year for the next few years. Dominion Energy’s dividends will likely increase by 10% in 2019. To learn more, read Dominion and NextEra Energy: Which Dividend Is More Attractive?