NV Energy, Inc. (NVE): Warren Buffett Just Bought This Dividend Stock

More Buffett bites
All dividend stocks are not created equal, but recent overvaluation worries have dropped prices back down for some potential value grabs. Investors should look for utilities with stable earnings, diverse generation portfolios, and an eye toward future fundamentals.

Stable earnings are a result of a plethora of factors, but friendly regulation is the best starting point. Ameren Corp (NYSE:AEE) is making major strides in Illinois legislature, with recent wins for both smart grid modernization projects and $330 million more in natural gas investments.

Dividend stocks such as Exelon Corporation (NYSE:EXC) and The Southern Company (NYSE:SO) offer stable income sources with major investments up their sleeves. The utilities rely on steady nuclear generation for 55% and 16% of their capacity, respectively, but are also expanding into other energy opportunities. Exelon Corporation (NYSE:EXC) operates 44 wind projects with nearly 1,300 MW of capacity and plans to invest $80 million in smart grid upgrades over the next two years. The Southern Company (NYSE:SO) has recently been on a renewables rampage, adding on 139 MW of solar, 250 MW of wind, and 53 MW of biomass in the past few months.

Dividend stocks for the win
Berkshire Hathaway Inc. (NYSE:BRK.B)’s announcement might push Wall Street back toward utilities, but smart investors didn’t need the nudge. Reasonably priced dividend stocks have historically outperformed other investments — and without the price swings that keep shareholders up at night. Don’t bite into utilities just because of Buffett — do it because dividend stocks are downright delicious.

The article Warren Buffett Just Bought This Dividend Stock originally appeared on Fool.com.

Fool contributor Justin Loiseau owns shares of Berkshire Hathaway. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool recommends Berkshire Hathaway, Exelon, and Southern and owns shares of Berkshire Hathaway.

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