3 Utilities Stocks With Big Earnings, Balanced Risk

Key Points

• Utilities sector names Artesian Resources, Clearway Energy, and NiSource all stand out for a balance of earnings growth and passive income, among other benefits.
• While the utilities space is typically seen as a defensive play, utilities stocks are among the best-performing names across the market in 2025.
• Utilities companies may be able to grow revenues even in difficult market and economic conditions due to their essential nature.

Investors often skip over the utilities sector in favor of companies in higher-growth industries. Utilities stocks tend to be stable sources of dividend income and defensive plays. With all of the tumult in markets so far in 2025, though, the utilities sector has actually emerged as one of the most resilient sectors.

The Utilities Select Sector SPDR Fund NYSEARCA: XLU, an exchange-traded fund (ETF) holding more than 30 of the top utilities names and a benchmark for the sector as a whole, has returned 8% year-to-date (YTD).

By comparison, the S&P 500 is up under 2% over the same period.

Utilities stocks have held strong due to consistent demand even as names in other sectors zig-zagged up and down amid general volatility and turmoil. Another factor buoying some utilities companies is their potential role in serving data centers that are key to AI and cloud technologies.

For investors seeking a utilities play that has the potential for growth to balance the sector's natural defensiveness, a number of companies may strike the right balance of risk and reward.

Strong Growth for Mid-Atlantic Water Utility Across Business Lines

Mid-Atlantic region water and wastewater utilities provider Artesian Resources Corp. NASDAQ: ARTNA saw shares climb by about 10% YTD, although with price-to-book and price-to-sales ratios of 1.53 and 3.24, respectively, shares appear to be fairly attractively valued nonetheless.

The company may draw investors' interest because of its positive earnings surprise in May. With earnings per share (EPS) of 53 cents, Artesian topped analyst predictions by an impressive 18 cents per share. Quarterly revenue also exceeded predictions; analysts see room for further earnings growth. 

Artesian's earnings performance improved thanks to growth in both its water and wastewater revenue. During the quarter, the company increased its customer count and instituted a new distribution system improvement charge. The company's service line protection plan gained in popularity, driving 8% year-over-year (YOY) growth in non-utility revenue.

With an increase in rates likely later this year, Artesian's top line should continue to grow. This should only help the company to maintain or grow its attractive dividend yield of 3.58%, which it achieves with a healthy payout ratio of 59.13%.

Battery Systems Propels Clearway to EPS Beat

Clearway Energy Inc. NYSE: CWEN is primarily a renewable energy utilities firm, although it also operates a conventional energy business. What investors may be most drawn to in this company, however, are its battery storage operations. Its Honeycomb portfolio of battery energy storage systems in Utah began construction in March and is expected to reach commercialization in 2026. 

It has helped further establish Clearway as a leader in dispatchable power, which is likely to become increasingly important in areas suffering from a lack of energy grid reliability in the future.

Clearway marked a successful first quarter of the year with an EPS beat, coming in at 3 cents per share when analysts have predicted a loss. Adjusted EBITDA for its renewables and storage segment climbed by about 30% YOY, and generation in that segment was 13% higher than the prior-year quarter.

While Clearway has a high dividend yield of 5.67%, it also sports a dividend payout ratio of 218.75%, meaning that it may be overpaying on dividends relative to its earnings. This is not a good sign for the company's future dividend payments, unless it is able to maintain earnings growth.

Earnings Beat and Renewables Push Drive Enthusiasm for NiSource

Shares of natural gas and electric utility company NiSource Inc. NYSE: NI are up more than 8% YTD along with the broader utilities sector as the company recently beat earnings estimates by 8 cents per share.

The company also reaffirmed its long-term goal of 6–8% EPS growth, which analysts see coming to pass.

NiSource is in the early stages of a massive growth project.

The company plans to allocate $19 billion in expenditures toward 2,100 MW of renewables secured well below market prices.

Analysts have signed on unanimously to the company's efforts, with all 10 that have reviewed NI shares offering a Buy rating.

What's more, the firm pays out a healthy 2.84% dividend yield with a 60.54% payout ratio.