10 Safest Dividend Stocks to Buy Now

6. Pinnacle West Capital Corporation (NYSE:PNW)

Beta: 0.47

Dividend Yield: 2.94%

No. of Hedge Funds: 38

Pinnacle West Capital Corporation (NYSE:PNW) is the parent company of Arizona Public Service (APS), which delivers electricity to more than a million customers. Their generation portfolio includes nuclear, solar, and natural gas. Operating from its Arizona headquarters, the company prioritizes grid reliability and sustainability. Compared to other utility companies like El Paso Electric and NV Energy, Pinnacle West Capital Corporation (NYSE:PNW) survives in the market through its focus on energy innovation in desert environments. The company leverages solar capacity expansion to support Arizona’s growth.

Pinnacle West Capital Corporation (NYSE:PNW) has quietly delivered a high growth of 24.97% in the past 52 weeks, eclipsing the broader market. The full-year EPS of the company in 2024 reached $5.24, an increase of $0.83 from 2023. In the Q4 quarter results, the company has also announced a 2.1% growth in customer rate, which is above their midpoint guidance range for 2024. For 14 consecutive years, Pinnacle West Capital Corporation (NYSE:PNW) has been increasing its dividend per share at an average rate of 1.73%, demonstrating its commitment to increasing shareholder value. The company has also set the long-term EPS growth guidance between 5% and 7%.

The company’s low beta of 0.47 and a 2.94% dividend yield make it preferable for conservative investors seeking relatively less risky dividend stock. Institutional confidence in the stock stands high, with 38 hedge funds backing the company, as per Insider Monkey’s Q4 2024 database.