This Utility's Dividend Growth Is Boring by Design. That's Exactly Why I Own It.
Constellation Energy has been a stand-alone public company for just five years, but it's quickly asserting itself as a credible dividend grower.
Overview
Long before the sector became a derivative play on the artificial intelligence (AI) trade, utility stocks were coveted by income-hungry, risk-averse investors. The thesis often attached to the sector is access to above-average yields and defensive traits with the potential for better long-term returns than high-grade bonds. Not to be overlooked is the sector's potential for payout growth.
Utility stocks account for 13.3% of the S&P High Yield Dividend Aristocrats® index, a gauge that includes only those members of the S&P Composite 1500 index that have raised dividends in at least 20 consecutive years.
This utility stock has quickly become a dependable dividend growth name. Image source: Getty Images.
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Originally published at www.fool.com.