Utility stocks provide essential products and services such as electricity, natural gas, and water and wastewater to residential and commercial customers. The steady demand for these services has helped utility stocks historically generate relatively stable earnings.
Meanwhile, the rates they charge for delivering these services are either regulated (approved by a government entity) or contractually guaranteed (nonregulated). Utilities’ reliable earnings enable these companies to pay dividends with above-average yields.
However, not all utility stocks deliver competitive investment returns. The Best Utilities Stock To Buy Right Now share additional noteworthy characteristics that give them the power to outperform.
Here Are The Best Utilities Stock To Buy Right Now
10.NextEra Energy (NEE)
NextEra Energy, Inc., through its subsidiaries, generates, transmits, and distributes electric power in North America.
- Market Cap: $143.5 Billion
- Dividend Yield: 1.40 (1.93%)
9.Duke Energy (DUK)
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables.
- Market Cap: $67.6 Billion
- Dividend Yield: 3.86 (4.23%)
8.Dominion Energy (D)
Dominion Energy produces and transports energy. The company’s Dominion Energy Virginia segment engages in the regulated electric generation, transmission, and distribution operations that serve residential, commercial, industrial, and governmental customers in Virginia and North Carolina
- Market Cap: $62.1 Billion
- Dividend Yield: 2.52 (3.32%)
7.The Southern Company (SO)
Through its subsidiaries, the Southern Company engages in the generation, transmission, and distribution of electricity. It operates in four segments: Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services.
- Market Cap: $65.2 Billion
- Dividend Yield: 2.56 (4.16%)
6.American Electric Power Company (AEP)
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments.
- Market Cap: $41.6 Billion
- Dividend Yield: 2.96 (3.55%)
5.Exelon Corporation (EXC)
Exelon Corporation, a utility services holding company, engages in the generation and marketing of energy in the United States and Canada. It owns nuclear, fossil, wind, hydroelectric, biomass, and solar generating facilities. The company also sells electricity to wholesale and retail customers; and sells natural gas, renewable energy, and other energy-related products and services.
- Market Cap: $40.1 Billion
- Dividend Yield: 1.53 (3.74%)
4.Xcel Energy (XEL)
Through its subsidiaries, Xcel Energy Inc. generates, purchases, transmits, distributes, and sells electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through coal, nuclear, natural gas, hydroelectric, solar, biomass, oil, wood/refuse, and wind energy sources. It also purchases, transports, distributes, sells natural gas to retail customers and transports customer-owned natural gas.
- Market Cap: $35.7 Billion
- Dividend Yield: 1.72 (2.62%)
3.Sempra Energy (SRE)
Sempra Energy operates as an energy services holding company in the United States and internationally. The company’s San Diego Gas & Electric Company segment generates, transmits, distributes electricity, and supplies natural gas.
It provides electric services to a population of approximately 3.7 million and natural gas services to about 3.4 million of that population, covering an area of 4,100 square miles.
- Market Cap: $36.9 Billion
- Dividend Yield: 4.18 (3.26%)
2.WEC Energy Group (WEC)
WEC Energy Group, Inc., through its subsidiaries, provides regulated natural gas and electricity and nonregulated renewable energy services in the United States. The company operates through six segments: Wisconsin, Illinois, Other States, Electric Transmission, Non-Utility Energy Infrastructure, and Corporate and Other.
It generates and distributes electricity from coal, natural gas, oil, hydroelectric, wind, and biomass sources; provides electricity transmission services; offers retail natural gas distribution services; transports natural gas; and generates, distributes, and sells steam.
- Market Cap: $29.5 Billion
- Dividend Yield: 2.71 (2.90%)
1.Public Service Enterprise Group Incorporated (PEG)
Through its subsidiaries, Public Service Enterprise Group Incorporated operates as an energy company primarily in the Northeastern and Mid-Atlantic United States. It operates through two segments, PSE&G and PSEG Power.
The PSE&G segment transmits electricity, distributes electricity and gas to residential, commercial, and industrial customers, invests in solar generation projects, energy efficiency and related programs, and offers appliance services and repairs.
- Market Cap: $29.1 Billion
- Dividend Yield: 1.96 (3.40%)