The Best Utility Stocks for Dividend Income

Hassan Maishera - December 06, 2019

best utilities stocks

Income investors favor utility stocks for their stability and steady dividends. These companies usually pay steady dividends with decent yields. Falling bond yields are pushing many investors towards utility stocks as they search for higher yields.

Some utilities pay dividend yields above the S&P 500 average. These stocks are ideal for income investors. These utility stocks generate good dividend yields that are perfect for income investing.

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Best Utility Stocks for Dividend Income

PPL Corp (PPL)

PPL Corp is an energy corporation based in Allentown, Pennsylvania. The company handles about 8,000 megawatts of regulated electric generating capacity and serves millions of customers in Pennsylvania, Kentucky, and Great Britain.

utility stocks ppl
PPL is based in Allentown, PA and primarily services Pennsylvania customers, but it also serves customers in Kentucky and Great Britain.

The dividend yield for PPL as of December 5, is 4.83%. It’s significantly higher than the 1.92% of the broader S&P 500. PPL Corp’s return is also more than the 2.93% recorded by the Electric Power Industry.

PPL Corp has seen a remarkable investment in its shares over the past few days. Institutional investors such as BancorpSouth Bank, Bank of New York Mellon Corp, Covalis Capital LLP, First Trust Advisors LP, Nuveen Asset Management LLC lifted, and Vanguard Group Inc., all boosted their positions in the stock.

Southern Company (SO)

Southern Company is a gas and utility holding company based in Atlanta. It’s currently the second-largest utility provider in the United States in terms of the customer base.

As of December 5, 2019, the dividend yield for Southern Company is 3.95%. This yield is higher than both the electric power industry average of 2.93% and the S&P 500’s 1.95%.

Shares are up by 40% since the start of the year, and hedge funds are bullish on the stock. In recent months, the number of bullish hedge fund positions in the Southern Company increased to nine.

Entergy Corp (ETR)

This Fortune 500 energy company is based in New Orleans, but it services customers in several states. The company focuses on electric power production and retail distribution operations in the United States.

Entergy Corp’s dividend pays more than the broader market. Entergy’s dividend yield is currently 3.1%, higher than both the S&P 500 and the electric power industry’s yields.

Entergy Arkansas, a subsidiary of Entergy Corp and NextEra Energy Resources, started the construction of the Chicot Solar Energy Center. The center would be the largest universal, utility-scale solar energy project in Arkansas.

Edison International (EIX)

Edison International is a California-based public utility holding. It has several subsidiaries, including Southern California Edison, Edison Mission Energy, and others. Shares currently yield about 3.4%. That’s higher than the dividend yield of the S&P 500 and the Electric Power Industry.

utility stocks Edison international
Edison International produces and delivers electrical power to customers across California and other parts of the U.S.

The shares of Edison International has performed well so far this year. It is currently up by 26% year-to-date but could move further as we close out 2019.

American Electric Power Co., Inc. (AEP)

American Electric Power Co., Inc. is one of the largest investor-owned electric utility in the country. It currently supplies electricity to millions of customers in 11 states across the US.

Similar to the others, American Electric Power Co., Inc. has recorded impressive dividend yields so far this year. As of December 5, 2019, the dividend yield for the company stands at 3.02%. The figure is above the returns recorded by both the S&P 500 and the Electric Power Industry.

The shares of American Electric Power is up by 27% year-to-date and hedge funds remain bullish on the price. Hedge funds such as Pacitti Group Inc., Bogart Wealth LLC, Welch & Forbes LLC, E&G Advisors LP, and Oregon Public Employees Retirement Fund recently added to their positions in the company.

More On Utilities and Income Investing

Utility stocks are great for income investors because of their stable dividends. Subscribe to the Dork to follow all things utility stocks. You can get even more stock market news by following the Stock Dork on Twitter and Facebook. Don’t miss another update, sign up for mobile Dork Alerts to get hot stock picks, insights, and analysis delivered directly to your phone.

Hassan Maishera is a cryptocurrency expert and a Stock Dork freelance contibutor.

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