Exelon Corporation (EXC), NextEra Energy, Inc. (NEE): Check Out Your Other Options Before Buying This Utility!

The Southern Company (NYSE:SO) has a chart that is closer to Exelon Corporation (NYSE:EXC)’s in terms of recent losses, although shares have lost a less drastic 7% from peak levels. The company is one of the largest electricity producers in the U.S., currently serving 4.4 million customers in Alabama, Georgia, Florida, and Mississippi. While not quite as much of a technological leader as NextEra Energy, Inc. (NYSE:NEE), Southern looks pretty attractive at the current levels, with a 4.5% yield and rising earnings. The company has an excellent track record of raising its dividend, but remember that its payout ratio is generally in the 70-80% range.

Final thoughts

While I do believe that Exelon Corporation (NYSE:EXC) will do well over the long term, there certainly appear to be better options out there right now for people who want utilities exposure in their portfolios. Either of the other two companies mentioned (or both) would make a great addition to any portfolio, and each has its own qualities that make it a winner. As far as Exelon goes, my current attitude is “wait and see,” although a sub-par quarter this time could result in a much more attractive entry point that may make it worth overlooking the company’s past performance.

The article Check Out Your Other Options Before Buying This Utility! originally appeared on Fool.com and is written by Matthew Frankel.

Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends Exelon and Southern Company. Matthew is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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