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When Energy Markets Shift, This Dividend Keeps Rising

Built on essential infrastructure and regulatory discipline, this income stock has raised its dividend through decades of economic change. That endurance makes this an electric pick.

Author

Noah Zelvis
January 23, 2026

Energy markets evolve. Policies change. Technologies come and go. This dividend has kept flowing through it all, anchored in infrastructure built to outlast the cycle. Could it light up your income portfolio?

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Northwest Natural Holding Company (NYSE: NWN) sits at the centre of daily life in the Pacific Northwest.

Its roots run deep, serving communities through a regulated natural gas network built to last decades, not quarters.

Its business is defined by essential demand, long-term infrastructure, and a steady relationship with regulators, creating a foundation that has supported investors through multiple economic and energy cycles.

What brings NWN into focus today is consistency reinforced by momentum.

The dividend has just been increased again, extending a remarkable record of annual growth that spans generations.

That combination of regional stability and an unwavering commitment to shareholder returns gives this name a credibility few companies can match.

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A utility model designed for durability

At its core, Northwest Natural Gas is a regulated local distribution utility serving residential, commercial, and industrial customers across Oregon and southwest Washington.

The business is built around long-lived infrastructure, predictable demand, and a regulatory framework that prioritises safety, reliability, and capital recovery.

Most earnings come from the gas distribution segment, where state regulators set rates and returns are earned through approved investment programmes.

This provides clear visibility into cash flows and supports ongoing spending on pipeline replacement, system upgrades, and safety improvements.

Customer growth is modest, but usage remains resilient due to the region's essential nature of heating and energy supply.

Cash flows shaped by regulation, not cycles

Alongside the core utility, a smaller portfolio of non-regulated assets includes renewable natural gas investments and water utilities. These operations are not designed to drive rapid earnings growth, but they do add diversification and position the company for gradual evolution as energy systems change.

Overall, the operating model favours discipline over scale. Capital is deployed carefully, regulatory relationships are central, and growth is incremental rather than aggressive. For dividend investors, that structure matters. It is designed to protect cash generation first, with expansion pursued only where it supports long-term stability.

Action: NWN is a stock best suited to income-focused investors who value reliability over rapid upside.

It works well as a core holding rather than a tactical trade, particularly for portfolios built around long-term dividend durability.

If you’re new to this stock, patience matters. Entry points are most attractive when broader market volatility or interest rate pressure weighs on regulated utilities, allowing the yield and long-term record to do the heavy lifting.

This is not about timing perfection. It is about owning a business that keeps paying, through cycles and policy shifts alike.

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Earnings momentum with regulatory backing

The latest quarter reinforced the strength of the underlying utility model. NW Natural Holdings delivered solid year-to-date performance, driven primarily by regulated utility operations and the continued contribution from recent acquisitions.

Adjusted earnings for the first nine months of the year reached $1.52 per share, up from $0.88 in the prior-year period, reflecting new rate outcomes, growth at SiEnergy, and improving contributions from the water utility platform.

At the same time, the company invested over $330 million into its gas and water systems, expanding the rate base and reinforcing long-term cash flow visibility.

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Rate outcomes and investment driving results

Management now expects full-year results to come in above the midpoint of guidance, supported by constructive regulatory progress, growing customer connections, and steadily producing renewable natural gas assets.

The takeaway is simple: operating momentum remains aligned with the company’s long-standing income strategy.

A payout built on longevity and discipline

The dividend remains the central pillar of the investment case. The quarterly payment is 49 cents per share, yielding 4.21% and supported by regulated cash flows and a conservative financial structure.

What truly differentiates this stock is its record. The most recent increase extends a run of 71 consecutive years of dividend growth, a level of consistency that reflects decades of disciplined capital allocation, constructive regulatory outcomes, and a clear commitment to shareholders.

The forward payout ratio of 61.45% sits comfortably within the range expected for a regulated utility.

It allows the business to continue funding infrastructure investment while maintaining the durability of the dividend. For income investors, this is a payout designed to be sustained across cycles rather than stretched for short-term appeal.

Action: This dividend is best suited to long-term income investors who prioritise reliability and steady growth.

It fits well as a core holding where patience and compounding are the objective.

The risk beneath the reliability

The biggest risk lies in regulation and capital intensity. Rate case outcomes ultimately shape returns, and while the company has a strong track record, regulatory timelines and decisions can create periods of earnings pressure or delayed cost recovery.

Any shift toward less constructive regulation in core jurisdictions would weigh on cash flow visibility.

Interest rate sensitivity also remains a headwind. As a capital-heavy utility, higher financing costs can pressure earnings and valuation, particularly if rates remain elevated for longer than expected.

This matters not just for debt servicing, but for investor appetite as income-focused capital rotates between equities and fixed income.

Where pressure could emerge

The longer-term energy transition risk should not be ignored. While natural gas remains essential in the Pacific Northwest today, policy shifts, electrification trends, and decarbonisation targets could gradually limit demand growth.

Management's investments in renewables and water help offset this, but the transition is unlikely to be linear or risk-free.

This is not a stock immune to pressure. It relies on steady execution and supportive regulation to maintain the income story.

A dividend built to keep showing up

This stock stands out not because it promises change, but because it has already proved endurance.

Few companies can point to decades of rising dividends while operating through shifting energy markets, regulatory cycles, and economic stress. This one can.

The business remains anchored by regulated cash flows, ongoing infrastructure investment, and a management team that treats the dividend as a long-term commitment rather than a marketing tool.

Growth is incremental, risks are known, and expectations are set realistically. That combination matters more than upside headlines for investors focused on reliability.

Action: This dividend is best approached as a long-term income holding rather than a yield trade.

It suits you if you’re building a dependable cash flow base and willing to hold through rate cycles in exchange for consistency and steady annual growth.

Add on periods of broader utility weakness and allow the income stream to compound over time.s.

That’s all for today’s edition of the Dividend Brief.

Thanks for reading, and if you have any feedback or dividend stocks you want me to take a look at, just reply to this email!

—Noah Zelvis
DividendBrief.com