As long as inflation doesn't tick up to the historical average (closer to 3%) or higher, the buying power of Dominion's dividend will continue to expand over time. Dominion is basically slowing its dividend growth to around 2.5% to create some financial breathing room (it wants to maintain its investment-grade credit rating) and bring the payout ratio back down into the 70% range. Management is proactively changing the dividend growth rate now so it can ensure income investors, who have come to rely on the utility's hefty yield, won't be disappointed later.