These 2 Utility Stocks Could Turn $150,000 Into $4,800 a Year in Dividends
One water company has raised its dividend for 54 straight years. A gas utility has done it for 71. Both carry risks that could test the income promise, and the gap between their yields tells you where the pressure sits.
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Retirement changes the question investors ask. During the working years, the focus is on how large a portfolio can grow. After the last paycheck, the question becomes how much the portfolio can pay out every quarter without forcing a sale of shares into a weak market. Regulated utilities have answered that question for retirees for generations.
State commissions set utility rates, which tends to make cash flow steady and predictable. The two companies below have turned that stability into some of the longest dividend-growth records on public markets, with 54 consecutive annual increases for one and 71 for the other. A $150,000 investment split equally, with $75,000 in each, would generate roughly $4,800 in annual passive income, or about $400 a month.
Here is what a $75,000 stake in each of these two dividend-growth utilities would produce, starting with the lower yield and ending with the higher one. All yields below are forward yields based on the current indicated annual dividend.
Middlesex Water: 54 Years of Raises Funded by Rate Base Growth
- Stock #2: Middlesex Water (NASDAQ:MSEX)
- Forward Yield: 2.56%
- Shares for $75,000: 1,262.41
- Annual Passive Income: ~$1,918.87
Middlesex Water, founded in 1897, runs regulated water and wastewater systems serving more than half a million people in New Jersey and Delaware, with Delaware served through its Tidewater Utilities subsidiary. The model is simple: invest in pipes and treatment plants, then recover that spending through base rate cases and infrastructure surcharges. Regulators backed that approach when New Jersey approved a $14.5M annual revenue increase at a 9.6% authorized ROE, effective Feb. 23, 2026.
The yield is the lower of the two partly because the stock has run higher. Shares are up 20.19% year to date to $59.41. On Oct. 23, 2026, the board raised the quarterly payout 5.56% to $0.38, which lifts the annual rate to $1.52. The company has paid a cash dividend every year since 1912.
Coverage is comfortable. Third-quarter EPS came in at $0.95, ahead of the $0.86 estimate, on revenue that rose 11.3% to $60.2M. Nine-month EPS is $2.31, and the new annual rate equals about 64% of fiscal 2025 EPS of $2.36. Capital spending poses the biggest risk. Management plans $506M of capex from 2026 through 2028, including roughly $255M for PFAS treatment, and that spending depends on regulators allowing timely recovery. Rate sensitivity is a second risk: the stock still sits 36.31% below where it traded five years ago.
Northwest Natural: 71 Straight Increases and a Growing Texas Footprint
- Stock #1: Northwest Natural (NYSE:NWN)
- Forward Yield: 3.84%
- Shares for $75,000: 1,441.20
- Annual Passive Income: ~$2,882.40
Northwest Natural is a utility holding company serving nearly one million customers across seven states. Its core gas utility runs about 809,000 meters in Oregon and southwest Washington. SiEnergy adds about 98,600 meters in fast-growing Texas markets, and NW Natural Water adds about 81,700.
The higher yield shows the profile of a gas utility. Earnings follow the seasons and the weather, and a heavy capital program keeps the stock discounted. The quarterly dividend just rose to $0.50 from $0.4925, payable Nov. 13, 2026. That is the largest increase since 2012.
Management raised 2026 EPS guidance to $3.10 to $3.20, so the $2.00 annual dividend equals about 63% of the midpoint. The third-quarter loss of $0.71 per share is typical for the summer quarter and still beat the -$0.87 estimate. Regulators keep adding revenue: Washington approved a $20.1M first-year increase, and Oregon added $13.0M effective Oct. 31, 2026. The balance sheet is the risk to watch. Long-term debt stands at 59.1% of capitalization, and $2.6 to $2.9 billion of planned capex through 2030 could mean more borrowing and share dilution.
Combined Income From a $150,000 Utility Pair
| Name | Forward Yield | Annual Dividend Income |
|---|---|---|
| Middlesex Water | 2.56% | $1,918.87 |
| Northwest Natural | 3.84% | $2,882.40 |
| Total | 3.20% | $4,801.27 |
Combined, these two positions generate $4,801.27 in annual passive income on a $150,000 investment, a blended yield of 3.20%. Northwest Natural adds $2,882.40, and Middlesex Water rounds out the pair with $1,918.87.
For retirees, the value lies in income that grows on its own. Both boards raised their payouts in 2026, so the same shares now produce more cash than they did a year ago. Next to a fixed annuity or a bond coupon, a utility income stream that grows with rate base growth gives retirees some protection against inflation over a long retirement (we outlined a fuller plan for turning a mid six-figure balance into reliable monthly income in a free report here).
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
