But don’t overlook the company’s regulated utility assets, which are largely made up of Florida Power & Light. That’s one of the nation’s largest electric utilities and has long benefited from migration to the Sunshine State. More customers mean more revenue and more need to invest in growth projects.

You can get higher yields elsewhere in the utility sector, but the dividend growth that NextEra Energy offers will be hard to replicate.

American Water Works is one of the largest publicly traded water utilities. It is currently offering a yield of 2.2%. That’s the lowest dividend yield of the three and certainly doesn’t sound huge, but it is above the five-year average yield for the company, which is about 1.7%. That suggests that the stock is attractively priced right now.

Add in the 10-year annualized dividend growth rate of just under 10%, and the story gets even more attractive.

That said, American Water Works is probably the most boring option from a business perspective. It owns and operates water and wastewater systems.

But water is clearly essential to life. And the U.S. water system is old and in need of huge upgrades driven by capital investment. That’s the opportunity, with American Water Works’ five-year capital investment plan for up to $18 billion, and its 10-year plan for up to $42 billion.

All of that spending will help support regulated rate growth between 8% and 9% a year. Now, this boring stock will suddenly look a lot more exciting, considering that the 7% to 9% dividend growth target is pretty compelling, too.

Just like every other industry, the utility sector is made up of individual companies. Yes, many are boring, slow-growth companies. But there are a few gems in there that buck the trend in a very good way.

Brookfield Renewable, NextEra Energy, and American Water Works are three of them. If you like dividend growth stocks, you’ll probably find each one attractive as we enter the month of November.

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*Stock Advisor returns as of November 4, 2024

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Renewable and NextEra Energy. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

3 Dividend Growth Stocks That Are Screaming Buys in November was originally published by The Motley Fool