Latest news with #utilitystocks
Yahoo
14-07-2025
- Business
- Yahoo
My 3 Top Stocks to Buy in a Market That's Highly Volatile (Again)
Dominion Energy is the kind of stable utility stock that's great to own during turbulent markets. Enbridge has a lower risk than ever before with its midstream and natural gas utility businesses. Vertex Pharmaceuticals boasts a strong cystic fibrosis franchise along with exciting new products and pipeline candidates. 10 stocks we like better than Dominion Energy › "Please fasten your seatbelts." Anyone who has flown frequently has probably heard those words before. It's what airline pilots and flight attendants tell passengers when the ride is about to get bumpy. If you haven't noticed yet, stock market turbulence has returned thanks to a familiar culprit -- tariffs. I suspect it could get worse. Investors may want to fasten their seatbelts metaphorically. However, being cautious doesn't mean you can't still put money to work. Here are my three top stocks to buy in a market that's highly volatile (again). Utility stocks tend to fare quite well during turbulent markets. It's easy to see why. Their businesses and revenue streams are largely immune to bad things that happen at the macroeconomic level. Many utilities are regulated monopolies, so they don't even have to worry about competitive threats. I think Dominion Energy (NYSE: D) is a fantastic utility stock to buy with renewed market volatility. The company provides electricity to 3.6 million residential and business customers in Virginia, North Carolina, and South Carolina. It provides natural gas service to around 500,000 customers in South Carolina. Dominion is also a leading developer of renewable energy. As you might guess, this is the kind of stable business that's great to own when the going gets tough. Another positive about most utility stocks is that they pay solid dividends. Dominion Energy checks off this box, too. Its forward dividend yield is 4.64% right now. Even if the stock treads water, investors can still make money. One knock against utility stocks is that they can be boring. However, I don't think that's true for Dominion Energy. Why? For one thing, the company serves markets with fast-growing populations. Also, Dominion's home state of Virginia is the hottest spot on the planet for data centers. With a huge artificial intelligence (AI) tailwind driving data center demand, Dominion's growth prospects look good. A few years ago, Enbridge (NYSE: ENB) probably wouldn't have ranked among my top three stocks to buy in a volatile market. Granted, it wouldn't have been a bad choice. The company's pipelines would still transport oil and gas throughout the U.S. and Canada regardless of stock market dynamics. Today, though, Enbridge is arguably less risky than ever. Its 2023 acquisitions of three U.S. businesses previously owned by Dominion Energy increased Enbridge's stability. The company is now the largest natural gas utility in North America based on volume. Enbridge is still classified as a midstream energy stock. However, the company says that it has "a utility-like business profile." That's a good description, in my opinion. Enbridge also pays a dividend that's even better than utility-like, with a yield of 6.11%. Could the Trump administration's tariff on Canadian imports hurt Enbridge, since many of the company's pipelines transport oil and gas from Canada to the U.S.? I don't think so, at least not all that much. It helps that tariffs on energy imports are 10%, well below the 25% level on most products. More importantly, the U.S. needs Canadian fuels. Vertex Pharmaceuticals (NASDAQ: VRTX) isn't a regulated monopoly like Dominion Energy. However, the big biotech company markets the only therapies that treat the underlying cause of cystic fibrosis (CF), a rare genetic disease. You can bet the farm that physicians will continue prescribing Vertex's CF drugs, patients will continue taking them, and insurers will still pay for them regardless of what happens with the stock market. I expect Vertex's CF business will strengthen in 2025 and over the next few years. Its newest CF therapy, Alyftrek, is as powerful as the company's current top-seller, Trikafta. But its once-daily dosage is more convenient. In addition, Vertex pays lower royalties on Alyftrek than it does with its other CF drugs. There's good news across the board with this new therapy. But Vertex has even better news. The company recently launched another new drug called Journavx. It's the first new class of pain medication approved by the U.S. Food and Drug Administration in over two decades. Journavx isn't an opioid and doesn't have the addictive qualities and side effects associated with opioids. I predict this drug will quickly become another blockbuster for Vertex. As icing on the cake, Vertex's pipeline is loaded with promising candidates. I'll mention just one of them: povetacicept. This late-stage program targets IgA nephropathy, a kidney disease that affects more than 1 million patients -- nearly 10 times the patient population for CF. Before you buy stock in Dominion Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dominion Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Keith Speights has positions in Dominion Energy, Enbridge, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Enbridge and Vertex Pharmaceuticals. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy. My 3 Top Stocks to Buy in a Market That's Highly Volatile (Again) was originally published by The Motley Fool
Yahoo
08-07-2025
- Business
- Yahoo
10 Under-the-Radar Utility Stocks with Incredible Growth Potential
Utility stocks have not, historically, been known as growth investments. Demand for electricity is set to see a step change. Utilities are suddenly offering more growth potential, even though investors still see them as boring dividend stocks. 10 stocks we like better than NextEra Energy › Utility stocks were once called "widows and orphans" stocks because they were considered so safe and boring. That image isn't far from the view today, noting that utilities are generally looked at as reliable dividend stocks. But things could be about to change thanks to a step change in demand for electricity. Here are 10 utility stocks that present under-the-radar opportunities thanks to the growth the utility sector is about to see. Before getting into the list of 10 utilities that you might want to look at today, it is important to understand the key underlying trends in the sector. Between 2000 and 2020 electricity demand grew 9%. Not 9% a year, just 9% over the entire 20-year period. Over the next 20 years, however, electricity demand is expected to grow by 55%. Compared to 9%, 55% is practically explosive growth. The demand surge will flow from artificial intelligence (AI) and data centers, which are projected to see a 300% demand increase over just the next decade. And electric vehicles, which are projected to see an increase in electricity demand of 9,000% between now and 2050. All in, electricity is projected to grow from 21% of final energy demand to 32% by the middle of the century. This should drive growth for utilities across the country, and for some companies that produce electricity but that aren't actually utilities. Here are 10 companies to start you off if you want to take advantage of the long-term growth potential on offer from the utility sector. OK, Vanguard Utilities Index Fund ETF (NYSEMKT: VPU) isn't a company at all, it's an exchange traded fund. However, if you aren't inclined to try to pick stocks, it gets you exposure to the utility sector quickly, easily, and in a diversified manner. Since the entire utility sector should benefit from the demand trends, Vanguard Utilities Index Fund ETF is a good punt option. The yield is currently around 2.8%. NextEra Energy (NYSE: NEE) owns the largest utility in the state of Florida and has increased its dividend at a rapid 10% annualized clip over the past decade. That's largely driven by the fact that NextEra Energy also owns a business that operates solar and wind power assets, which are not regulated. This provides investors with a solid foundation and a growth platform all in one investment. The yield is currently around 3.2%. The Southern Company (NYSE: SO) is one of the largest utilities in the United States with a focus on the Southeast. The big story here is the recent start up of two nuclear reactors, which will provide the utility with reliable clean energy to sell for decades to come. The construction of those power plants was over budget and delayed. But now that they are up and running Southern Company's outlook is far less cloudy and it is positioned to supply power without the negative of producing greenhouse gases. The yield is 3.2%. Duke Energy (NYSE: DUK) has recently slimmed its business down, selling off non-regulated assets. The goal was to focus on the far more reliable demand that comes from regulated utility customer bases. This demand is set to see increased growth thanks to things like AI, data centers, and EVs. The big benefit for investors is that the ups and downs of Wall Street aren't really a factor for Duke Energy's plans once regulators approve its capital spending and rates. The dividend yield is around 3.5%. Dominion Energy (NYSE: D) is a bit tougher to love than the utilities noted above. That's because, like Duke, it has been trimming its business, which is now largely focused on regulated electric assets. But along the way there was a dividend cut and right now the dividend is stuck in neutral until Dominion's balance sheet is in better shape. But the dividend yield is a lofty 4.7% and the company operates in one of the most important data center markets in the world. It's worth a look for more aggressive investors. Shifting to the opposite extreme, Black Hills Corporation (NYSE: BKH) has increased its dividend annually for more than five decades. That makes it one of the few utilities to have achieved Dividend King status. Add in a yield of 4.8% and income seekers will probably find it very attractive. Notably the utility's customer base is growing at nearly twice the rate of the broader U.S. population. Constellation Energy (NASDAQ: CEG) isn't a regulated utility, instead selling power "competitively." The big story here, however, is that the company operates the largest nuclear power fleet in the United States. There's more downside risk here, since customers can cancel their contracts (which they can't really do within a regulated supplier relationship), but there's more upside, too, since increasing demand could lead to increasing power prices. Include the big position in nuclear power, which is likely to help sate the huge demand from AI, and it looks like Constellation could be a growth story poised to take off. It has a tiny yield of 0.5%, however, so income investors probably won't be interested. Speaking of non-utilities, Brookfield Renewable (NYSE: BEP)(NYSE: BEPC) is another clean energy investment to consider. This is basically a one-stop shop for investors, given that its portfolio spans across hydroelectric, solar, wind, battery storage, and nuclear. And it owns assets the world over, so the opportunity for growth goes well beyond just the U.S. market. The company recently signed a decade-long deal to provide Microsoft with clean power for data centers. The one wrinkle here is that there are two different ways to buy Brookfield Renewable, with the partnership class offering a 5.8% distribution yield and the corporate class offering a 4.5% dividend yield. The two classes represent the same entity, the difference in yield is driven by higher demand for the corporate class of shares. This is an attractive investment, but it's a bit complex. Portland General Electric (NYSE: POR) is a mix of opportunity and risk. On the risk front, it operates on the West Coast, where wildfires have been an ongoing concern. That said, on the positive side, its service area includes a key landing for international subsea communications cables. That puts Portland General Electric in a prime location for data centers and technology companies, noting that its service area includes the so-called "silicon forest" region. If you can handle the wildfire risk, the stock has a 5.1% dividend yield. Last up on the list is Eversource Energy (NYSE: ES), which operates regulated utility assets in the Northeast. What's interesting here is that the company doesn't own power generation assets, it only distributes power on a local and interstate level. It passes the cost of power directly on to the customer, with its earnings largely derived from fees for the use of its transmission assets. Regulatory rate increases and new customer growth are the key stories here, with exposure to water and natural gas helping to provide a diversified business foundation. The dividend yield is roughly 4.7% today. What's exciting about the trends driving demand for electricity is that they aren't going to play out in a year or two. They are expected to last decades, providing an opportunity for buy and hold investors to build material long-term wealth as the demand growth story plays out. The above 10 investments are a diversified collection of stocks (and one ETF) that you might want to look into now as the demand growth trends are just starting to pick up their pace. Before you buy stock in NextEra Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and NextEra Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Reuben Gregg Brewer has positions in Black Hills, Brookfield Renewable Partners, Dominion Energy, and Southern Company. The Motley Fool has positions in and recommends Constellation Energy, Microsoft, and NextEra Energy. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, Dominion Energy, and Duke Energy and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 10 Under-the-Radar Utility Stocks with Incredible Growth Potential was originally published by The Motley Fool
Globe and Mail
08-07-2025
- Business
- Globe and Mail
10 Under-the-Radar Utility Stocks with Incredible Growth Potential
Key Points Utility stocks have not, historically, been known as growth investments. Demand for electricity is set to see a step change. Utilities are suddenly offering more growth potential, even though investors still see them as boring dividend stocks. 10 stocks we like better than NextEra Energy › Utility stocks were once called "widows and orphans" stocks because they were considered so safe and boring. That image isn't far from the view today, noting that utilities are generally looked at as reliable dividend stocks. But things could be about to change thanks to a step change in demand for electricity. Here are 10 utility stocks that present under-the-radar opportunities thanks to the growth the utility sector is about to see. What's behind the change in the utility sector? Before getting into the list of 10 utilities that you might want to look at today, it is important to understand the key underlying trends in the sector. Between 2000 and 2020 electricity demand grew 9%. Not 9% a year, just 9% over the entire 20-year period. Over the next 20 years, however, electricity demand is expected to grow by 55%. Compared to 9%, 55% is practically explosive growth. The demand surge will flow from artificial intelligence (AI) and data centers, which are projected to see a 300% demand increase over just the next decade. And electric vehicles, which are projected to see an increase in electricity demand of 9,000% between now and 2050. All in, electricity is projected to grow from 21% of final energy demand to 32% by the middle of the century. This should drive growth for utilities across the country, and for some companies that produce electricity but that aren't actually utilities. Here are 10 companies to start you off if you want to take advantage of the long-term growth potential on offer from the utility sector. 1. Punt with an ETF OK, Vanguard Utilities Index Fund ETF (NYSEMKT: VPU) isn't a company at all, it's an exchange traded fund. However, if you aren't inclined to try to pick stocks, it gets you exposure to the utility sector quickly, easily, and in a diversified manner. Since the entire utility sector should benefit from the demand trends, Vanguard Utilities Index Fund ETF is a good punt option. The yield is currently around 2.8%. 2. NextEra Energy NextEra Energy (NYSE: NEE) owns the largest utility in the state of Florida and has increased its dividend at a rapid 10% annualized clip over the past decade. That's largely driven by the fact that NextEra Energy also owns a business that operates solar and wind power assets, which are not regulated. This provides investors with a solid foundation and a growth platform all in one investment. The yield is currently around 3.2%. 3. The Southern Company The Southern Company (NYSE: SO) is one of the largest utilities in the United States with a focus on the Southeast. The big story here is the recent start up of two nuclear reactors, which will provide the utility with reliable clean energy to sell for decades to come. The construction of those power plants was over budget and delayed. But now that they are up and running Southern Company's outlook is far less cloudy and it is positioned to supply power without the negative of producing greenhouse gases. The yield is 3.2%. 4. Duke Energy Duke Energy (NYSE: DUK) has recently slimmed its business down, selling off non-regulated assets. The goal was to focus on the far more reliable demand that comes from regulated utility customer bases. This demand is set to see increased growth thanks to things like AI, data centers, and EVs. The big benefit for investors is that the ups and downs of Wall Street aren't really a factor for Duke Energy's plans once regulators approve its capital spending and rates. The dividend yield is around 3.5%. 5. Dominion Energy Dominion Energy (NYSE: D) is a bit tougher to love than the utilities noted above. That's because, like Duke, it has been trimming its business, which is now largely focused on regulated electric assets. But along the way there was a dividend cut and right now the dividend is stuck in neutral until Dominion's balance sheet is in better shape. But the dividend yield is a lofty 4.7% and the company operates in one of the most important data center markets in the world. It's worth a look for more aggressive investors. 6. Black Hills Corporation Shifting to the opposite extreme, Black Hills Corporation (NYSE: BKH) has increased its dividend annually for more than five decades. That makes it one of the few utilities to have achieved Dividend King status. Add in a yield of 4.8% and income seekers will probably find it very attractive. Notably the utility's customer base is growing at nearly twice the rate of the broader U.S. population. 7. Constellation Energy Corporation Constellation Energy (NASDAQ: CEG) isn't a regulated utility, instead selling power "competitively." The big story here, however, is that the company operates the largest nuclear power fleet in the United States. There's more downside risk here, since customers can cancel their contracts (which they can't really do within a regulated supplier relationship), but there's more upside, too, since increasing demand could lead to increasing power prices. Include the big position in nuclear power, which is likely to help sate the huge demand from AI, and it looks like Constellation could be a growth story poised to take off. It has a tiny yield of 0.5%, however, so income investors probably won't be interested. 8. Brookfield Renewable (Partnership or Corporation) Speaking of non-utilities, Brookfield Renewable (NYSE: BEP)(NYSE: BEPC) is another clean energy investment to consider. This is basically a one-stop shop for investors, given that its portfolio spans across hydroelectric, solar, wind, battery storage, and nuclear. And it owns assets the world over, so the opportunity for growth goes well beyond just the U.S. market. The company recently signed a decade-long deal to provide Microsoft with clean power for data centers. The one wrinkle here is that there are two different ways to buy Brookfield Renewable, with the partnership class offering a 5.8% distribution yield and the corporate class offering a 4.5% dividend yield. The two classes represent the same entity, the difference in yield is driven by higher demand for the corporate class of shares. This is an attractive investment, but it's a bit complex. 9. Portland General Electric Portland General Electric (NYSE: POR) is a mix of opportunity and risk. On the risk front, it operates on the West Coast, where wildfires have been an ongoing concern. That said, on the positive side, its service area includes a key landing for international subsea communications cables. That puts Portland General Electric in a prime location for data centers and technology companies, noting that its service area includes the so-called "silicon forest" region. If you can handle the wildfire risk, the stock has a 5.1% dividend yield. 10. Eversource Energy Last up on the list is Eversource Energy (NYSE: ES), which operates regulated utility assets in the Northeast. What's interesting here is that the company doesn't own power generation assets, it only distributes power on a local and interstate level. It passes the cost of power directly on to the customer, with its earnings largely derived from fees for the use of its transmission assets. Regulatory rate increases and new customer growth are the key stories here, with exposure to water and natural gas helping to provide a diversified business foundation. The dividend yield is roughly 4.7% today. Plenty of opportunity ahead for utilities to grow What's exciting about the trends driving demand for electricity is that they aren't going to play out in a year or two. They are expected to last decades, providing an opportunity for buy and hold investors to build material long-term wealth as the demand growth story plays out. The above 10 investments are a diversified collection of stocks (and one ETF) that you might want to look into now as the demand growth trends are just starting to pick up their pace. Should you invest $1,000 in NextEra Energy right now? Before you buy stock in NextEra Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NextEra Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor 's total average return is1,060% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Reuben Gregg Brewer has positions in Black Hills, Brookfield Renewable Partners, Dominion Energy, and Southern Company. The Motley Fool has positions in and recommends Constellation Energy, Microsoft, and NextEra Energy. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, Dominion Energy, and Duke Energy and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
28-06-2025
- Business
- Yahoo
3 Utility Stocks That Could Help Set You Up for Life
Written by Daniel Da Costa at The Motley Fool Canada If you're looking to build long-term wealth with as little stress as possible, utility stocks are unquestionably some of the best investments you can make. They may not be flashy or fast-moving, but that's exactly what makes them so attractive for long-term investors. Utility companies provide essential services such as electricity, natural gas, or water and that consistent demand gives them some of the most stable and predictable revenue streams in the market. Because of that stability, utility stocks are ideal for conservative investors or anyone focused on generating reliable, long-term returns. They tend to hold up well during economic downturns, they often pay steady and consistently growing dividends, and many are backed by regulated frameworks that reduce volatility and help mitigate risk even further. Therefore, because these stocks have predictable revenue and are consistently investing in future growth, they aren't just defensive stocks. In fact, the best utility stocks still offer solid growth potential over the long haul. These stocks increase earnings every year, which consequently allows them to increase their dividend payments, allowing the share price to follow suit. And when you combine that long-term upside with steady income and recession resistance, utility stocks become one of the best core stocks for your portfolio. So, if you're looking to boost your income or shore up your portfolio, here are three of the best utility stocks to buy now. If you're looking for a solid utility stock to buy now, there's no question that Emera (TSX:EMA) and Fortis (TSX:FTS) are two of the best in Canada. Both stocks provide both electricity and gas services to their millions of customers, and each company has diversified operations all over North America. This diversification is crucial because it takes an already low-risk industry and helps to reduce risk even more. However, while both Fortis and Emera have many similarities, the main difference between the two stocks today is their dividends. Currently, Fortis is expecting to increase its dividend between 4% and 6% annually through 2029, while Emera expects to increase its dividend by 1% to 2% annually over the next few years as it works to shore up its balance sheet and reduce its payout ratio. However, while Fortis offers more dividend growth potential over the coming years, it has a lower yield today. Right now, Fortis is offering investors a yield of roughly 3.8%, compared to Emera's current yield of 4.7%. Fortis also has a much longer track record of consistent dividend increases. While Emera's 18-year streak is impressive, Fortis has increased its dividend every year for half a century. So, although they are both two of the top utility stocks you can buy on the TSX, the slight edge still goes to Fortis unless you're looking for a higher-yield stock with the same level of reliability. In addition to Fortis and Emera, another top utility stock to consider adding to your portfolio today is AltaGas (TSX:ALA). AltaGas is one of the more unique utility stocks in Canada, offering a mix of traditional utility operations and high-potential energy infrastructure. It owns regulated natural gas utilities in the U.S., but it also has a large midstream energy segment focused on natural gas processing, exports, and storage. This diversified model makes AltaGas a reliable investment while also giving it the potential to grow faster than a regular utility stock. Its utility business provides steady cash flow and earnings visibility, while the midstream business offers upside tied to global demand for North American energy, particularly the growing Asian market, where AltaGas exports energy through its Ridley Island terminal. Furthermore, in recent years, AltaGas sold off a ton of non-core assets and strengthened its balance sheet significantly, which is why it's now one of the best utility stocks to buy and hold for the long haul. Finally, not only does it offer a yield of 3.3%, but AltaGas keeps that dividend sustainable by targeting a payout ratio of roughly 60%. So, if you're looking for a high-quality utility stock to buy now and hold for years, AltaGas is certainly one you'll want to consider. The post 3 Utility Stocks That Could Help Set You Up for Life appeared first on The Motley Fool Canada. Before you buy stock in Altagas, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Altagas wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends Emera and Fortis. The Motley Fool has a disclosure policy. 2025
Yahoo
19-06-2025
- Business
- Yahoo
This Overlooked Utility Stock Delivers Impressive Dividend Growth
Evergy, Inc. (NASDAQ:EVRG) is one of Best Dividend Stocks to Buy for Dependable Growth. Evergy, Inc. (NASDAQ:EVRG) is often overlooked among utility stocks, despite having a strong track record of dividend growth. The company has increased its dividend for 20 consecutive years, averaging nearly 6% annual growth over the past five years. In addition, the stock has a dividend yield of 4%, as of June 17. It is one of the best dividend stocks. A power line stretching across a sunbathed landscape with rural homes in the foreground. Analysts expect this upward trend to continue, supported by a solid business outlook. In February, Evergy, Inc. (NASDAQ:EVRG) revealed that its pipeline of large electricity customers, such as data centers, had grown to 11.2 GW, exceeding its current peak demand. To support this growth, the company raised its 2025–2029 capital spending plan by 8% to $17.5 billion. Earnings-wise, Evergy, Inc. (NASDAQ:EVRG) reaffirmed its long-term adjusted EPS growth target of 4% to 6% through 2029, based on a 2025 midpoint of $4.02. Starting in 2026, the company expects to hit the higher end of that range. It also maintains a solid cash position, with trailing twelve-month operating cash flow exceeding $2 billion. The company currently offers a quarterly dividend of $0.6675 per share. Evergy, Inc. (NASDAQ:EVRG) supplies electricity to 1.7 million customers across Kansas and Missouri through its subsidiaries: Evergy Kansas Central, Evergy Metro, and Evergy Missouri West. While we acknowledge the potential of EVRG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
