BEPC - 3 Utility Dividend Stocks to Buy Hand Over Fist in June
2024-06-08 04:02:00 ET
Dividend-paying utility stocks were once viewed as the cornerstone of a conservative investor's income portfolio. The market is much larger today than when utilities were called "widows and orphans" stocks, but more dividend stock options don't actually change the desirability of adding some boring utilities to your portfolio of dividend stocks. As June gets underway, you might want to take a look at NextEra Energy (NYSE: NEE) , Brookfield Renewable (NYSE: BEPC) (NYSE: BEP) , and, for those with a contrarian bent, Dominion Energy (NYSE: D) . Here's why.
NextEra Energy has grown its dividend at around 10% a year, on an annualized basis, over the past decade. That's a good figure for any company, let alone a boring utility. To put that number into perspective, a mid-single-digit dividend growth rate would normally be considered strong for a utility. But here's the thing: NextEra is projecting 10% dividend growth out until at least 2026, as well. If you are a dividend growth investor or a growth and income investor, you will love NextEra Energy.
NextEra Energy achieves its dividend growth with a unique approach. The core of the business is a large regulated utility operation , largely made up of Florida Power & Light. This division provides slow and steady growth. On top of the regulated utility operations, NextEra layers on one of the largest solar and wind companies on the planet, which is where the overall company's growth is coming from.
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3 Utility Dividend Stocks to Buy Hand Over Fist in June