With the U.S. economy shedding 23,000 jobs in July and inflation holding above 3.5%, reliable dividend growth can feel more valuable than ever. Paychecks are under pressure, yet some companies continue to raise payouts at a measured pace. This article walks through three dividend growth stocks that appear better placed to handle this softer labor backdrop so you can judge whether they deserve a closer look now.

The stocks covered below are a useful sample of dividend growth ideas, yet the full screen surfaced 20 more companies with similarly detailed stories that are not included here. If you want to go beyond this short list and focus on ideas that fit your own income goals, head straight into the Dividend Growth Stocks screener to identify, compare, and analyze potential high-conviction dividend growth stocks.

American Water Works Company (AWK)

Overview: American Water Works Company is the largest publicly traded water utility in the US, supplying regulated water and wastewater services to about 3.6 million customers across 14 states, including residential, commercial, industrial, military, and public sector users. The company operates a broad network of treatment plants, pipelines, wells, pumping stations, storage facilities, and dams to deliver essential water services.

Operations: American Water Works Company generates the bulk of its US$5.3b in revenue from Regulated Businesses at about US$4.9b, with a smaller US$409 million contribution from Other activities, all within the United States.

Market Cap: US$26.8b

American Water Works Company is often considered by dividend-focused investors who want essential service exposure at a time when job losses and inflation are squeezing household budgets. The company’s results reflect regulated water and wastewater operations that have shown resilient earnings, supported by ongoing rate case approvals and investment in infrastructure and digital systems. Recent updates highlight 8% adjusted EPS growth in Q2 2026 and continued progress on the Essential Utilities merger and acquisitions such as Nexus Water Group, which broaden its customer base and scale. On the other hand, the company trades at a relatively rich valuation, has a modest ROE, and depends on external debt funding and regulatory decisions. For investors willing to weigh those trade offs, the combination of steady earnings, infrastructure spending, and stated dividend growth objectives may warrant closer analysis.

American Water Works Company sits at the crossroads of essential infrastructure and premium pricing. To see how that balance plays out in detail, walk through the 2 key rewards and 2 important warning signs (1 is major!)

Build your own essential service dividend shortlist

American Water Works Company and the two other stocks in this article all came from a single screener, but the real edge comes from shaping your own filters around dividends, valuation, financial health, and risk. Use our flexible Screener to create a shortlist that fits your income goals, or tap into our curated Investing Ideas for ready made starting points.

OGE Energy (OGE)

Overview: OGE Energy is a regulated electric utility that generates power from coal, natural gas, wind, and solar, then transmits and sells that electricity to about 913,000 customers across a 30,000 square mile service area in the United States. The company also provides bill payment solutions and electric construction services to residential and business customers, with operations centered around Oklahoma City.

Operations: OGE Energy generates its US$3.2b in revenue almost entirely from its Electric Company segment, all within the United States.

Market Cap: US$9.7b

OGE Energy attracts dividend growth investors who want a regulated utility with earnings that are tied to essential electricity demand rather than discretionary spending. This can be helpful when job losses and inflation are putting pressure on household budgets. Customer and load growth from projects like data centers, new industrial facilities, and local developments such as the planned US$900 million Thunder Arena give the company more opportunity to put new generation and transmission assets to work. Recent guidance for 2026 earnings per share in the US$2.38 to US$2.48 range shows how management frames that opportunity. At the same time, slower historical earnings, a dividend and interest bill that lean on external funding, and a pure focus on Oklahoma and Arkansas all point to risks that readers should weigh carefully before deciding whether OGE Energy fits their income portfolio.

OGE Energy’s regulated earnings, data center demand, and big-ticket projects like the Thunder Arena hint at a story that many income investors may be underestimating. The full picture, including key trade offs, sits in the 2 key rewards and 2 important warning signs (1 is major!)

UGI (UGI)

Overview: UGI is a diversified energy company that distributes propane, natural gas, LPG, and electricity to millions of residential, commercial, industrial, and wholesale customers in the US and overseas, with deep roots in Pennsylvania and operations spanning utilities, midstream infrastructure, and international LPG.

Operations: UGI generates most of its revenue from AmeriGas Propane at US$2.1b, Utilities at US$2.0b, UGI International at US$2.0b, and Midstream & Marketing at US$1.6b, partially offset by smaller corporate and segment adjustments.

Market Cap: US$7.3b

UGI may appeal to investors who want dividend growth supported by essential energy services at a time when job losses and inflation are pressuring household cash flow. The company is reshaping its portfolio through divestitures and higher rate cases in Pennsylvania to focus on regulated utilities, grid modernization, and renewable natural gas projects, which can potentially improve earnings quality and capital flexibility. At the same time, UGI faces clear pressures, including customer attrition in propane, structural shifts away from fossil fuels, and a dividend that is not well covered by free cash flow today. The key consideration for income focused investors is whether these portfolio changes and regulatory outcomes can outpace those headwinds and keep UGI’s dividend record on track as the labor market softens.

UGI’s refocus on regulated utilities, grid upgrades, and renewable natural gas could be masking a very different earnings and dividend story than its past suggests. Get the full context in the full narrative for UGI

Seeking Fresh Alternatives Before They Fly?

New ideas move fast and today’s quiet outlier can become tomorrow’s breakout stock. Scan these under the radar lists before the crowd catches on and act now.

• Spot companies with strong cash positions and resilient earnings profiles by running the list of solid balance sheet and fundamentals (49 results) while pricing still reflects limited attention.
• Track potential momentum in early stage miners with the 30 elite gold producer stocks, which focuses on companies that could benefit if interest in precious metals accelerates from current levels.
• Explore infrastructure spending themes by reviewing the 36 power grid technology and infrastructure stocks, which highlights companies positioned around grid reliability, capacity upgrades, and long term capital projects.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.