When we think of the utility sector, we tend to think of the heavily regulated power producers. However, there are whole swaths of firms that sell power to other utilities to help regulate the grid and satiate peak energy demand. It’s here that investors can find growth and our Best Dividend Growth Stocks Model pick has found a profitable niche – one that pays a growing 3.4% dividend yield!
Our pick is proof that turnarounds can happen; it uses its focus as an independent power producer to generate plenty of cash flow, allowing it to boost its balance sheet, make plenty of smart acquisitions, focus on green energy projects and reward its shareholders.
Since its newfound focus, our pick has managed to increase its dividend for the last three years. The latest being a nearly 4% increase, declared in August 2022.
With energy demand still rising, our pick’s position as an independent power producer coupled with its strong balance sheet makes it an ideal play for growth-oriented dividend seekers.
In addition to our new utility pick, we have also added an industrial stock as well as removed a defense contractor and a healthcare firm from the list.
You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.
