Roger S. Conrad

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.

Inflation is back. How long it stays at the official January rate of 7.5 percent depends on myriad, shifting factors. But so long as it’s here, it’s imperative to seek some level of protection against the relentless, corrosive impact on wealth.

Renewable energy stocks went from riches to rags last year. And the downside momentum has continued in 2022, as investor worries have built around the potential negative impact of supply chain disruption, rising commodity costs, a tight labor market and the stalling of President Biden’s “Build Back Better” plan.