In this article, we are going to discuss the 10 high yield utility stocks to buy in 2026.
The S&P Utilities index posted gains of 12.7% in 2025, driven primarily by the ballooning demand from data centers, as well as the rapid electrification of homes and businesses. According to the Energy Information Administration, the US electricity demand achieved its second straight record high in 2025 and is set to continue this momentum and reach new highs in 2026 and 2027 as well.
To keep up with the record-breaking demand, the US utilities sector broke a new record in CapEx spending for the fourth consecutive year in 2025, hitting about $250 billion, according to S&P Global. The firm expects this figure to rise even further in the current year. The high capital spending has also been supported by the long-term power purchase agreements that utility companies have signed with multiple hyperscalers, who want to make sure that they have enough energy available to keep up in the AI race.
The utility sector is also known for its commitment to shareholders. According to the latest data available at Janus Henderson, the sector paid $69.7 billion in dividends in 2023, up from $57.9 billion in 2022.
With that said, here are the Best Utility Dividend Stocks to Buy Now.
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Our Methodology
To collect data for this article, we observed various companies operating in the utilities sector and then shortlisted the ones with an annual dividend yield of over 3% as of January 27, 2026. We have also mentioned the number of hedge funds invested in the aforementioned stocks at the end of Q3 2025, as per the Insider Monkey database. The following are the Best Utility Dividend Stocks to Buy Now.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Exelon Corporation (NASDAQ:EXC)
Dividend Yield as of Jan. 27: 3.57%
Number of Hedge Fund Holders: 41
Exelon Corporation (NASDAQ:EXC) is one of the country’s largest utility companies, serving more than 10.7 million customers through six fully regulated transmission and distribution utilities.
On January 27, Wolfe Research downgraded Exelon Corporation (NASDAQ:EXC) from ‘Outperform’ to ‘Peer Perform’, without assigning the stock a price target. The analyst believes that EXC’s utility will be held back by the political and regulatory ‘noise’ in its key states, in addition to its below-average earnings growth of 5%-7%. Wolfe expects the utility’s 2026 guidance to be in line with forecasts.
Exelon Corporation (NASDAQ:EXC) received a setback also on January 22 when Barclays analyst Nicholas Campanella lowered the firm’s price target on the stock from $52 to $50, but maintained an ‘Overweight’ rating on the shares. The revised target, which still indicates an upside of over 11% from the current share price, comes as the analyst firm updated targets in the power and utilities group as part of a Q4 preview.
Similarly, earlier on January 20, Wells Fargo analyst Shahriar Pourreza also reduced the firm’s price target on Exelon Corporation (NASDAQ:EXC) from $52 to $51, while maintaining an ‘Overweight’ rating on the shares.
9. Duke Energy Corporation (NYSE:DUK)
Dividend Yield as of Jan. 27: 3.54%
Number of Hedge Fund Holders: 62
Duke Energy Corporation (NYSE:DUK) engages in the distribution of natural gas and energy-related services. The company owns and operates a diverse mix of regulated power plants – including hydro, coal, nuclear, natural gas, solar, and battery storage.
Duke Energy Corporation (NYSE:DUK) reiterated its commitment to shareholders by announcing a quarterly dividend of $1.065 per share on January 6. The dividend is payable on March 16 to all shareholders as of the February 13 record. The utility generates very stable cash flows backed by government-regulated rate structures, allowing it to pay distributions to its investors for 99 consecutive years. As of the writing of this piece, DUK boasts an annual dividend yield of 3.54%.
On January 23, RBC Capital analyst Stephen D’Ambrisi lowered the firm’s price target on Duke Energy Corporation (NYSE:DUK) from $143 to $140, but maintained a ‘Sector Perform’ rating on the shares. The revised target, which still indicates an upside of over 16% from the current levels, comes as part of the analyst firm’s broader research note previewing Q4 2025 earnings in the utilities sector.
8. Evergy, Inc. (NASDAQ:EVRG)
Dividend Yield as of Jan. 27: 3.61%
Number of Hedge Fund Holders: 33
Evergy, Inc. (NASDAQ:EVRG) delivers electricity to approximately 1.7 million residential and commercial customers in homes and businesses in Kansas and Missouri.
On January 23, RBC Capital analyst Stephen D’Ambrisi lowered its price target on Evergy, Inc. (NASDAQ:EVRG) from $93 to $91, but maintained an ‘Outperform’ rating on the shares. The revised target, which still represents an upside of over 18% from the current share price, comes as part of a broader research note previewing Q4 earnings in the utilities sector. The analyst firm revised its model in the sector due to a number of utilities giving off-cycle or early previews of updated capital plans.
On the other hand, Wells Fargo raised its price target on Evergy, Inc. (NASDAQ:EVRG) from $77 to $79 earlier on January 20. The firm maintained its ‘Equal Weight’ rating on the stock. Calling Evergy a ‘battleground EW’, Wells Fargo has chosen to stay on the sidelines on valuation, while noting that a possible EPS CAGR increase has been well telegraphed and fairly reflected. While the firm acknowledges that EVRG looks more attractive, it is seeking a better entry point.
7. FirstEnergy Corp. (NYSE:FE)
Dividend Yield as of January 27: 3.76%
Number of Hedge Fund Holders: 30
FirstEnergy Corp. (NYSE:FE)’s 10 electric distribution companies form one of America’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York.
On January 27, Wolfe Research upgraded FirstEnergy Corp. (NYSE:FE) from ‘Peer Perform’ to ‘Outperform’, while assigning the stock a price target of $50. According to the analyst, the incremental Federal Energy Regulatory Commission transmission capex upside pushes the utility’s rate base growth to 10%. Wolfe Research expects FE’s earnings growth to come in toward the top-end of 6-8%.
FirstEnergy Corp. (NYSE:FE) also received a boost earlier on January 21. Morgan Stanley raised its price target on the stock from $47 to $49, while maintaining an ‘Overweight’ rating on the shares. The revised target, which indicates an upside of over 3% from the current levels, comes as the analyst firm is updating the Regulated & Diversified Utilities / IPPs in North America under its coverage. The analyst also noted that the utilities sector fell by 3% in December 2025, underperforming the wider market.
With an annual dividend yield of 3.76% as of the writing of this piece, FirstEnergy Corp. (NYSE:FE) is included among the 14 Best Utility Dividend Stocks to Buy Now.
6. OGE Energy Corp. (NYSE:OGE)
Dividend Yield as of January 27: 3.89%
Number of Hedge Fund Holders: 31
OGE Energy Corp. (NYSE:OGE), through its subsidiary, operates as an energy services provider in the United States.
OGE Energy Corp. (NYSE:OGE) had a setback on January 20 when Wells Fargo downgraded the stock from ‘Equal Weight’ to ‘Underweight’. The firm also decreased its price target on OGE from $45 to $39. The analyst noted that the utility’s shares trade at around a 3% premium compared to peers, despite its EPS growth expected to be in line with forecasts and no near-term catalysts to support the premium. The downgrade is driven by limited relative upside at the current share price, even though OGE’s fundamentals and execution look solid and the regulatory outlook remains constructive.
Later on January 22, Barclays analyst Nicholas Campanella also reduced the firm’s price target on OGE Energy Corp. (NYSE:OGE) from $51 to $49, but maintained its ‘Overweight’ rating on the shares. The revision comes as the analyst firm updated its targets in the power and utilities sector as part of a preview for Q4 2025.
With an impressive annual dividend yield of 3.89%, OGE Energy Corp. (NYSE:OGE) was recently included in the Dividend Contenders List: Top 20 Picks.
5. UGI Corporation (NYSE:UGI)
Dividend Yield as of January 27: 3.94%
Number of Hedge Fund Holders: 44
UGI Corporation (NYSE:UGI) is an international distributor and marketer of energy products and services, including natural gas, LPG, electricity, and renewable solutions, with well-developed infrastructure in key markets.
UGI Corporation (NYSE:UGI) announced on January 15 that it has reached a definitive agreement to sell its LPG distribution business in the Czech Republic, Hungary, Poland, and Slovakia to DCC plc for an enterprise value of approximately €48 million. The deal is part of the company’s previously announced portfolio optimization program and allows it “to sharpen its focus on the segments where it has the strongest competitive positions and growth opportunities”.
The transaction is expected to close in the first half of 2026, subject to customary closing conditions, with UGI using the net proceeds to reduce debt and strengthen its balance sheet.
UGI Corporation (NYSE:UGI) hit a 52-week high on January 27, with the stock posting gains of almost 30% over the last year. The company is set to announce its Q1 2026 results after the market closes on February 4.
4. Portland General Electric Company (NYSE:POR)
Dividend Yield as of January 27: 4.16%
Number of Hedge Fund Holders: 28
Next on our list of the Best Utility Stocks for Dividends is Portland General Electric Company (NYSE:POR). It is an integrated electric utility company, engaged in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in the state of Oregon.
Portland General Electric Company (NYSE:POR) received a lift on January 20 when Wells Fargo raised its price target on the stock from $45 to $49, while maintaining an ‘Equal Weight’ rating on the shares. The analyst believes that while the utility is headed in the right direction, it still needs more time to unlock its full value, and the shares could remain range-bound until new catalysts begin to bear fruit.
Portland General Electric Company (NYSE:POR) is set to announce its FY 2025 results on February 20. The company is expecting its adjusted earnings for the year to come in at $3.13 to $3.33 per diluted share. Moreover, it is forecasting a long-term EPS and dividend growth guidance of 5% to 7%, and long-term growth guidance of 3% through 2029.
Portland General Electric Company (NYSE:POR) offers an attractive annual dividend yield of 4.16% as of the writing of this piece. The stock has surged by more than 19% over the last year.
3. Northwest Natural Holding Company (NYSE:NWN)
Dividend Yield as of January 27: 4.20%
Number of Hedge Fund Holders: 15
Northwest Natural Holding Company (NYSE:NWN) operates natural gas distribution utilities serving the Pacific Northwest and Texas, as well as water and wastewater utilities serving customers across six states.
On January 16, Northwest Natural Holding Company (NYSE:NWN) announced a quarterly dividend of $0.4925 per share to all shareholders as of the January 30 record date, payable on February 13, 2026. The company is known for its strong commitment to shareholders, having increased its payouts for 70 consecutive years. This positions Northwestern Natural as one of only three NYSE companies with such a record. As of the writing of this piece, NWN boasts a strong annual dividend yield of 4.20%.
Northwest Natural Holding Company (NYSE:NWN) is set to announce its Q4 and full-year 2025 report on February 27. The company is expecting its FY 2025 adjusted earnings to be above the midpoint of its adjusted earnings range of $2.75 per share to $2.95 per share. Moreover, NWN reaffirmed its long-term EPS growth of 4% to 6% compounded annually from the midpoint of the 2025 adjusted EPS guidance range.
2. Eversource Energy (NYSE:ES)
Dividend Yield as of January 27: 4.26%
Number of Hedge Fund Holders: 41
Eversource Energy (NYSE:ES) operates New England’s largest energy delivery system and serves customers in Connecticut, Massachusetts, and New Hampshire.
Eversource Energy (NYSE:ES) announced on January 27 that its Board of Trustees has approved a quarterly dividend of $0.7875 per share, marking a 4.65% increase from its previous payout of $0.7525. This marks the 26th consecutive annual dividend increase by the utility. The dividend will be payable on March 31 to all shareholders of record as of March 5, 2026. ES boasts a robust annual dividend yield of 4.26% and was recently included in our list of the 14 Best Dividend Growth Stocks to Buy and Hold in 2026.
In other news, on January 20, Wells Fargo raised its price target on Eversource Energy (NYSE:ES) from $63 to $71, while maintaining an ‘Equal Weight’ rating on the shares. However, the analyst firm sees the revision as a battleground call, as it needs visibility on constructive outcomes to fill the major hole in the utility’s balance sheet. Wells noted that while there are pathways, it is still too early to get back into the shares.
1. Dominion Energy, Inc. (NYSE:D)
Dividend Yield as of January 27: 4.37%
Number of Hedge Fund Holders: 35
Dominion Energy, Inc. (NYSE:D) provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina.
On January 23, Dominion Energy, Inc. (NYSE:D) declared a quarterly dividend of $0.6675 per share to all shareholders as of the February 27 record, payable on March 20, 2026. This is the 392nd consecutive dividend that Dominion or its predecessor company has paid holders of common stock. The utility currently offers an attractive annual dividend yield of 4.37%.
In other news, Dominion Energy, Inc. (NYSE:D) received a boost on January 16 when a federal judge cleared the company to resume work on its Virginia offshore wind project. The Trump administration had suspended the lease for the $11.2 billion project last month, citing national security concerns, warning that large turbines could interfere with military and aviation radar systems and make it hard to identify and locate security threats.
Dominion Energy, Inc. (NYSE:D) has already spent nearly $9 billion on the 2.6 GW Coastal Virginia Offshore Wind project, which is expected to be operational this year.
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READ NEXT: 10 Best Performing Utility Stocks in 2025 and 11 Best Energy Stocks to Buy for Dividends in 2026.
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