November’s Hidden Gems: 3 Utility Stocks with Impressive Dividend Track Records
As the calendar flips to November, savvy investors are on the lookout for reliable dividend-paying stocks to bolster their portfolios. The utility sector, often overlooked, offers a trio of hidden gems that cater to diverse investor preferences.
A Small but Mighty Dividend King
Black Hills (NYSE: BKH), with a market cap of $4.1 billion, may fly under the radar, but its consistent dividend growth tells a compelling story. Serving 1.3 million customers across eight states, Black Hills benefits from a rapidly expanding customer base, growing at nearly three times the U.S. population rate. The real attraction lies in its slow and steady dividend growth, with a 5% annualized increase over the past decade and an impressive 54-year streak of consecutive dividend hikes. The 4.4% dividend yield, significantly above the industry average, makes Black Hills an attractive choice for conservative investors.
A High-Growth Utility Powerhouse
NextEra Energy (NYSE: NEE) is the antithesis of Black Hills, boasting an impressive 11% annualized dividend growth rate over the past decade. This utility giant has increased its dividend every year for three decades, driven by its solid foundation in the regulated utility space and its leadership in the clean energy sector. With a massive solar and wind portfolio, NextEra Energy is poised for continued growth, making it an ideal pick for dividend growth investors. Although the stock trades at a premium, the 2.6% dividend yield is a small price to pay for its impressive growth prospects.
A Value Play with a Rich Dividend History
Eversource Energy (NYSE: ES), with a $23 billion market cap, may not be an industry giant, but its 4.3% dividend yield, near historic highs, makes it an attractive value play. Despite some setbacks with offshore wind farm investments, Eversource has a proven track record of steady dividend growth over the past quarter-century. Management projects 5% to 7% earnings growth, which should translate to similar dividend growth. Investors with a value bent may find Eversource an appealing addition to their portfolios.
Investor Takeaway
Each of these utility stocks caters to unique investor preferences, offering a compelling reason to consider adding them to your portfolio in November. Whether you prioritize conservative dividend growth, high-growth potential, or value plays, Black Hills, NextEra Energy, and Eversource Energy are worth exploring.
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