16 High-Yield Utilities Stocks To Energize Your Portfolio

Published: January 29, 2026 by Austin Smith

Key Points

Utilities are generally considered defensive stocks, with the ability to ride through market downturns.
The artificial intelligence (AI) boom is driving exponential energy demand, which stands to benefit many of these stocks.
Utility stocks offer sustainable dividends, which many retirees appreciate.
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.

Utilities are perhaps the best defensive stocks out there, as they are not affected by the headwinds but are capturing tailwinds from key megatrends. They are reliable and have historically survived downturns since money still has to keep the lights on, the gas flowing, and the water running.

Today, the sector is not a buy just because of that intrinsic safety. Utility stocks are set to profit from the AI build-out as data centers consume enormous amounts of energy. Infrastructure needs to be expanded in parallel to keep up.

Borrowing costs are coming down while regulators approve faster rate increases. Regulators must do so as onshored factories need new connections and the aging grid needs to be upgraded.

Per Wells Fargo, this is a long-term megatrend. Wells Fargo is urging investors to get “very long” on utility stocks now, as said power demand tied to AI data centers is a structural driver that improves the sector’s risk-adjusted growth profile versus the broader market.

Here are 16 utility stocks that also pay a handsome dividend yield. Their dividend payouts are sustainable and well-covered by earnings.

#16 New Jersey Resources Corp. (NJR)

NJR currently costs $47.93 per share (as of Jan. 24) and has a dividend yield of 3.96%. The stock boasts 30 years of dividend increases, with a payout ratio of 56.60%. The company has a market cap of $4.829 billion.

#15 Black Hills Corp. (BKH)

BKH is priced at $71.68 per share, with a dividend yield of 3.77%. This utility has recorded 55 years of dividend increases and has a payout ratio of 58.89%. Black Hills has a market cap of $5.41 billion.

#14 Northwest Natural Holding Co. (NWN)

Northwest Natural’s shares are $45.83. The stock has a dividend yield of 4.29% and a payout ratio of 61.45%. With net assets of $1.902 billion, NWN has seen 71 years of dividend increases.

#13 Cia Paranaense De Energia Copel (ELP)

This utility costs $9.27 per share, with a dividend yield of 6.03%. ELP has a market cap of $6.386 billion.

#12 Emera Inc. (EMA)

Emera costs $49.84 per share, and has a dividend yield of 4.20%. With net assets of $15.039 billion, EMA has a payout ratio of 81.99%. It has one year of dividend increases under its belt.

#11 NorthWestern Energy Group Inc. (NWE)

NorthWestern Energy sells at $66.49 per share, and offers a dividend yield of 3.97%. NWE has 21 years of dividend increases, and a payout ratio of 65.32%. The utility has a market cap of $4.083 billion.

#10 ALLETE Inc. (ALE)

ALLETE costs $67.90 per share, and offers a dividend yield of 4.30%. ALE has 15 years of dividend increases and a payout ratio of 71.38%.

#9 Portland General Electric Co. (POR)

Portland General shares are priced at $49.33. The stock has a dividend yield of 4.26% and a payout ratio of 59.32%. With a market cap of $5.549 billion, POR has two consecutive years of dividend increases.

#8 UGI Corp. (UGI)

UGI has a dividend yield of 3.99% and a payout ratio of 44.53%. Priced at $38.85 per share, UGI has a market cap of $8.345 billion.

#7 Dominion Energy Inc. (D)

Dominion Energy costs $59.60 per share, and has a dividend yield of 4.48%. The stock has a payout ratio of 69.21%. Dominion’s market cap is $50.893 billion.

#6 Centrais Eletricas Brasileiras SA (EBR)

This utility is priced at $11.68 per share, and boasts a payout ratio of 200.77%. EBR has recorded two years of dividend increases.

#5 Brookfield Renewable Partners LP (BEP)

Brookfield Renewable Partners costs $28.35 per share, while offering a dividend yield of 5.26%. BEP has a market cap of $18.296 billion and claims two years of dividend increases.

#4 The AES Corp. (AES)

This utility is priced at $14.25 per share, with a dividend yield of 4.94%. AES has a market cap of $10.148 billion, a payout ratio of 29.67%, and offers 12 years of dividend increases.

#3 Avista Corp. (AVA)

Avista Corp has a dividend yield of 4.90% and a payout ratio of 68.50%. With shares priced at $40.04, Avista has a market cap of $3.258 billion and claims 23 years of dividend increases.

#2 Edison International (EIX)

EIX is trading at $60.77. The stock offers a dividend yield of 5.78% and payout ratio of 53.83%. Edison’s market cap is $23.386 billion. The utility has 23 years of consecutive dividend increases.