Roger S. Conrad

First off, everything I said in last month’s Portfolio discussion about reliable dividend growth goes double now. Companies that have it will beat inflation and grow your wealth in coming years. Those that don’t won’t.

Korea Electric Power (Korea: 015760, NYSE: KEP) still hasn’t declared an annual dividend for payment next month. But the company is effectively priced for a zero payout, after announcing a record operating loss for 2021 and guidance for an even larger one this year.

Just when central banks were turning their attention to fighting inflation, the fog of war has descended on global stock markets. The invasion of a major wheat producer by a country with allegedly the world’s second most powerful military is plenty disruptive on its own. But so far as investment returns are concerned, the unprecedented and still escalating global sanctions on Russia are by far the main event. And with the ground shifting rapidly, it’s critical to be sure what we’re standing on is still solid.

Stocks with sustainable 5 to 7 percent annual dividend growth: That’s how we’ll beat the current 40-year high in inflation, which pretty much caught the world’s central bankers napping.

The best place to hunt for companies to do that job is my Utility Report Card coverage universe—and particularly the stocks I recommend in the Conrad’s Utility Investor Portfolios.

Normally six months into a new quarter, the vast majority of companies I track would have released earnings and updated guidance. End-year filing requirements will extend the Q4 reporting period well into next month. But from what I’ve seen so far, the best in class are well on track to continue raising dividends faster than the current rate of inflation—and some much faster like Conservative Focus stock NextEra Energy Partners (NYSE: NEP) at 15 percent plus.

On February 2, Conservative Holding Exelon Corp (NYSE: EXC) closed the long-awaited spinoff of its wholesale power generation and retail energy arm. Shareholders received one share of the new company, Constellation Energy (NYSE: CEG), for every three Exelon. And I’ve added the stock to the Aggressive Holdings.

NextEra Energy Partners (NYSE: NEP) joined our Conservative Holdings in May 2016. Since then, its dividend has increased by 122 percent. That includes 15.1 percent over the last 12 months, which pushed the yield on our initial investment to nearly 10 percent.