#8 - Southern Company (NYSE:SO)
Southern Company (NYSE: SO) Utility stocks are frequently considered to be solid, blue-chip stocks for many investors. Generally, they enjoy monopolies in the areas they serve, helping them receive a steady revenue stream in those markets. After all, consumers need the basic services that they provide. One of the appeals of utility stocks is their ability to pay a dividend. In that respect, Southern Company does not disappoint. Southern Company is the nation’s second-largest utility company with a customer base of around 9 million. In addition to having an attractive 5.4% dividend yield, Southern Company is considered a dividend aristocrat, having paid out a regular dividend for 70 years, including 16 years where the annual payout has been on the rise. But what makes this stock an attractive play right now is that it’s actually showing growth. The company has expanded its unregulated business beyond its typical role in power generation and electrical distribution (which are highly regulated markets) to include natural gas (less regulated). They have done this through acquisitions and saw Q1 profits soar 33% from the same period last year.
About Southern
The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, gas distribution operations, and gas pipeline investments operations.
More- Current Price
- $83.84
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 9 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $89.79 (7.1% Upside)
