Regulated monopolies paying safe 3-5% dividends. Electric and gas utilities that never cut during recessions—perfect for defensive income.
Largest utility | Renewable energy leader
Market Cap
$140B
Div Growth
10.5%/yr
Payout Ratio
55%
Years
29
Largest electric utility in U.S. Parent of Florida Power & Light (FPL) and NextEra Energy Resources (world's largest producer of wind and solar energy). 29 consecutive years of dividend increases with 10.5% average annual growth—fastest growing utility dividend. Lower current yield but superior growth. Best utility stock for growth-oriented dividend investors.
Southeast monopoly | 98 years of dividends
Market Cap
$85B
History
98 years
Customers
8.2M
Safety
A
Serves 8.2 million customers across 6 Southeast states (Carolinas, Florida, Indiana, Ohio, Kentucky). 98 consecutive years of dividends—never missed a payment since 1926. Regulated monopoly = guaranteed returns on capital. Steady 2-3% annual dividend growth. Rock-solid for conservative income investors.
Deep South utility | Dividend aristocrat
Electric utility serving Georgia, Alabama, Mississippi, and parts of Florida and Illinois. 9 million customers. Dividend aristocrat with 23 consecutive years of increases. Conservative management focused on dividend safety. Major nuclear power operator. Ideal for income-focused retirees.
| Stock | Yield | Region | Growth |
|---|---|---|---|
| NextEra Energy (NEE) | 2.6% | Florida | Fast |
| Duke Energy (DUK) | 4.2% | Southeast | Steady |
| Southern Company (SO) | 3.8% | Deep South | Steady |
| Dominion Energy (D) | 4.9% | Mid-Atlantic | Steady |
| American Electric (AEP) | 3.7% | Midwest | Steady |
| Exelon (EXC) | 3.5% | Northeast | Steady |
| Xcel Energy (XEL) | 3.3% | Plains | Fast |
| WEC Energy (WEC) | 3.6% | Wisconsin | Steady |
| Consolidated Edison (ED) | 3.4% | New York | Steady |
| Public Service Enterprise (PEG) | 3.1% | New Jersey | Steady |
20 utilities ranked by dividend safety, growth, and yield with buy/sell recommendations
Utilities have government-granted monopolies in their service territories. Only one company can provide electricity to your home. No competition = stable profits.
Benefits:
People need electricity and heat in good times and bad. Utilities never cut dividends in 2008 or 2020 recessions. Usage barely declined.
Track Record:
Utilities can pass rising costs to customers through regulatory rate increases. Inflation = higher dividends over time.
Rate Mechanisms:
Lower current yields (2.5-3.5%) but faster dividend growth (7-10% annually). Best for investors with 10+ year time horizons who want growing income.
Top Picks:
Example: NEE's 2.6% yield grows to 6.7% yield-on-cost in 10 years at 10% growth rate.
Higher current yields (4-5%) but slower dividend growth (2-3% annually). Best for retirees who need income now and want safety.
Top Picks:
Example: DUK's 4.2% yield provides $4,200 annual income on $100K investment immediately.
$40K investment | 3.6% average yield
Portfolio Stats:
Annual Income
$1,440
Avg Yield
3.6%
Expected Growth
5.5%/yr