3 Dividend-Paying Utility Stocks To Build A Growing Income Stream

Utility stocks are a favorite among investors for their stability and reliable dividend payouts. In this piece, we highlight three standout Utility companies—National Fuel Gas Company, Alliant Energy Corporation, and Essential Utilities—each known for their consistent dividend growth.

National Fuel Gas 

National Fuel Gas Company NFG operates as a diversified energy firm with four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment focuses on natural gas and oil development. The Pipeline and Storage segment provides interstate natural gas transportation and storage services, while the Gathering segment manages natural gas processing and pipeline gathering. The Utility segment delivers natural gas services to customers in parts of New York and Pennsylvania. 

National Fuel Gas has raised its dividend for 53 consecutive years and currently pays a quarterly dividend of $0.495 per share, or $1.98 annually, with a yield of 3.52%. 

The stock is up nearly 13% year-to-date, and the company has beaten consensus EPS estimates for the last two quarters. Over the past year, it generated $1.95 billion in revenue and $465.6 million in net income.

Alliant Energy

Alliant Energy Corporation LNT is a utility holding company providing regulated electricity and natural gas services in the U.S. Its subsidiaries, Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL), generate and distribute electricity and natural gas to retail and wholesale customers in Iowa, Minnesota, Illinois, and Wisconsin. 

Alliant Energy has increased its dividend for 20 consecutive years and pays a quarterly dividend of $0.48 per share, or $1.92 annually, yielding 3.83%. 

Over the last twelve months, the company generated $3.98 billion in revenue and $698 million in net income.

Essential Utilities 

Essential Utilities Inc. WTRG operates regulated utilities providing water, wastewater, and natural gas services across the U.S. The company serves about 5.5 million customers under the Aqua and Peoples brands in states including Pennsylvania, Ohio, Texas, and Illinois. 

Essential Utilities has maintained a consecutive quarterly cash dividend for over 79 years. The company pays a quarterly dividend of $0.3071 per share, or $1.2284 annually, with a yield of 3.32%. 

Over the last twelve months, Essential Utilities reported $1.93 billion in revenue and $572.6 million in net income.

Looking For Higher-Yield Opportunities?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000.

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. 

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