Southern Company
This large-cap utility leader makes sense for very conservative accounts. Southern Company (NYSE: SO) engages in the generation, transmission and distribution of electricity. It constructs, acquires, owns and manages power generation assets, including renewable energy and battery energy storage projects. and sells electricity in the wholesale market.
The company distributes natural gas in Illinois, Georgia, Virginia and Tennessee, as well as provides gas marketing services, wholesale gas services and gas pipeline investments operations. It constructs, operates, and maintains 75,924 miles of natural gas pipelines and 14 storage facilities with total capacity of 157 Bcf to provide natural gas to residential, commercial and industrial customers.
The company serves approximately 8.6 million electric and gas utility customers. It also owns or operates 30 hydroelectric generating stations, 24 fossil fuel generating stations, three nuclear-generating stations, 13 combined cycle/cogeneration stations, 44 solar facilities, 13 wind facilities, one fuel cell facility and one battery storage facility. And it provides products and services in the areas of energy efficiency and utility infrastructure. In addition, the company offers digital wireless communications and fiber optics services.
Shareholders receive a 4.16% dividend. KeyCorp’s $71 price target compares with a $68.66 consensus target. Southern Company stock was trading at $67.15 on Tuesday’s close.
Xcel Energy
Conservative investors looking for ideas will like this dependable dividend-paying utility stock. Xcel Energy Inc. (NASDAQ: XEL) generates, purchases, transmits, distributes and sells electricity generated through coal, nuclear, natural gas, hydroelectric, solar, biomass, oil, wood/refuse and wind energy sources. It also purchases, transports, distributes and sells natural gas to retail customers, as well as transports customer-owned natural gas.
In addition, the company develops and leases natural gas pipelines, and storage and compression facilities, and it invests in rental housing projects, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. The company sells electricity to approximately 3.7 million customers and natural gas to approximately 2.1 million customers.
Investors receive a 3.05% dividend. Xcel Energy stock has a $77 target price at Credit Suisse. The consensus target is $76.29, and the final trade on Tuesday was reported at $64.76.
These seven top utility stocks have Buy ratings, pay very dependable dividends and might be just the place to ride out the storm. The old saying “you can’t fight the fed” works both ways. Even though the market is very oversold, as the rally to start the week showed, the reality is the rate hikes will continue throughout this year and possibly into 2023. So, stocks may continue to struggle until the rate hiking cycle is complete. Hiding in the utility sector is one of the best ideas for those concerned we could take a big leg lower.
Originally posted at 24/7 Wall St.
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