The utility sector is usually considered as a stable sector that offers slow or no growth and strong dividends. For this reason it is one of the sectors preferred by income investors. The industry is regulated and its very rare for a company to fail. One such case was the crash of the Hawaiian Electric Industries stock a while ago. According to a recent article I came across at Capital Group the utility sector could be the next growth. The authors of the piece discuss their theory based on the following three reasons:
Aging electric grid needs an overhaul
Utilities are powering the AI boom
Made in America: Reshoring ignites energy demand
A brief excerpt from the article:
Here’s why utilities, long known as reliable dividend payers, shouldn’t be ignored by growth investors.
For investors interested in individual stocks, the following list offers a good starting point for further research:
1.Company: Consolidated Edison Inc. (ED) Current Dividend Yield: 3.21%
2.Company: NRG Energy (NRG) Current Dividend Yield: 1.87%
3.Company: Edison International (EIX) Current Dividend Yield: 3.65%
4.Company: Portland General Elect. Co. (POR) Current Dividend Yield: 4.19%
5.Company: Sempra (SRE) Current Dividend Yield: 2.98%
6.Company: Southern Co. (SO) Current Dividend Yield: 3.21%
7.Company: Duke Energy Corp. (DUK) Current Dividend Yield: 3.59%
8.Company: Entergy Corp. (ETR) Current Dividend Yield: 3.50%
9.Company: NextEra Energy, Inc. (NEE) Current Dividend Yield: 2.49%
10.Company: American Electric Power Co., Inc. (AEP) Current Dividend Yield: 3.45%
Note: Dividend yields noted above are as of Sept 20, 2024. Data is known to be accurate from sources used. Please use your own due diligence before making any investment decisions.
