#3 - Southern Company (NYSE:SO)
Southern Company (SO) - When considering dividend stocks, utilities are always a solid choice. Utilities are highly regulated and they frequently operate as monopolies in certain regions. This lack of competition is bad for consumers, but great for investors who rely on consistent revenue to support a dividend.
But not all utilities provide the maximum benefit for investors. Size doesn’t always matter. But in the case of Southern Company (NYSE:SO), it matters a lot. The company is one of the largest utilities in the country. And it’s diversified in both electric and natural gas so it has reliable revenue that is less affected by the volatility of the commodities market.
Southern has not cut its dividend in over 70 years and it currently has a dividend yield of around 3.5%. If there’s any concern about SO stock at the moment, it’s that it may be a little expensive. But a larger concern may be that the company is currently investing in new infrastructure that will likely keep any dividend growth muted since the company will deploy the cash for other purposes.
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.
Read More - Current Price
- $75.48
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $74.71 (1.0% Downside)
