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4 Stocks With Sluggish Dividend-Growth Potential

These utilities will struggle to increase their dividends.

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Many of the utilities we cover have strong growth prospects and healthy financials that should allow them to easily grow their dividends. For a few utilities, however, dividend growth may be more challenging.

Hawaiian Electric's shareholders were treated to a rare dividend increase of 3.2% in the first quarter of 2019--the first in 20 years--and a similar increase in 2020. Once past the impact from COVID-19, which likely will result in no increase in 2021, we project average annual increases of roughly 3% for 2022 through 2024. Hawaiian Electric continues to be a confusing story for investors, as it derives roughly two thirds of consolidated earnings from an electric utility and about one third from Hawaii-based American Savings Bank. The Hawaiian economy, driven in large part by tourism, affects both businesses. And that reliance on tourism will weigh on Hawaiian's dividend growth. does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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