11 Most Undervalued Utility Stocks to Buy Now

8. Avista Corporation (NYSE:AVA)

Forward P/E: 14.20

On February 25, Avista Corporation (NYSE:AVA) raised its quarterly dividend to $0.4925 per share from $0.49, increasing the annual dividend to $1.97 per share. The company has increased its dividend for 24 consecutive years, delivering compound annual growth exceeding 5% and targeting a 60%–70% payout ratio.

That same day, Avista Corporation (NYSE:AVA) reported Q4 2025 results and issued 2026 non-GAAP utility EPS guidance of $2.52–$2.72 per diluted share. The outlook incorporates a one-time $0.12 headwind from a departing large customer and an estimated $0.10 negative midpoint impact from the energy recovery mechanism, which shares 90% of cost variances with customers. Management expects 2026 utility ROE in the low-to-mid 8% range and reiterated a longer-term ROE target of approximately 9% excluding ER impacts, with structural regulatory lag estimated at roughly 60 basis points. The company reaffirmed a 4%–6% long-term EPS CAGR target.

Avista Corporation (NYSE:AVA)’s CapEx totaled $553 million in 2025 and is projected at $585 million in 2026, with $3.4 billion planned from 2026–2030, representing approximately 5% base capital CAGR. An incremental potential of $350 million tied to the integration of a new large customer (125 MW initially ramping to 500 MW by 2030) could increase capital growth to roughly 12%. Funding plans include approximately $230 million of long-term debt and up to $90 million of common equity in 2026, alongside potential monetization of $148 million in nonregulated equity interests.

Founded in 1889 and headquartered in Spokane, Washington, Avista Corporation (NYSE:AVA) is among the most undervalued utility stocks to buy now. The company generates and transmits electricity and distributes natural gas to residential, commercial, and industrial customers.