In this article, we are going to discuss the 12 best utility stocks to buy for dividends.
The ongoing AI boom has taken the American appetite for energy to unprecedented levels, with the Energy Information Administration projecting the country’s power demand to grow to 4,191 billion kilowatt-hours this year and 4,305 billion kWh in 2026, up from a record 4,097 billion kWh in 2024.
So it comes as no surprise that the utility sector has outperformed the broader market and posted gains of over 18% so far since the beginning of 2025, after rallying more than 19% last year. As a result, the companies that supply Americans with their much-needed electricity have gained nearly $500 billion in value over this two-year period.
Moreover, with new data centers getting announced pretty much every week, the utility sector is working hard to make sure that it has enough capacity available to keep up with the ballooning demand and is expected to spend $1.1 trillion in capital investments through 2029, according to the Edison Electric Institute. The increased demand, coupled with an uptick in prices, will in turn also allow the industry to continue growing its cash distributions and keep its shareholders happy.
With that said, here are the Best Utility Dividend Stocks to Invest in.
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Our Methodology
To collect data for this article, we referred to several stock screeners to identify utility stocks with the most hedge fund investors in the Insider Monkey database as of the end of Q2 2025. Then we shortlisted the companies that have an annual dividend yield of at least 3% as of 22 October 2025. The following are the Best Utility Dividend Stocks According to Hedge Funds.
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).
12. Brookfield Renewable Corporation (NYSE:BEPC)
No. of Hedge Fund Investors: 22
Dividend Yield as of Oct. 22: 3.81%
Brookfield Renewable Corporation (NYSE:BEPC) operates one of the world’s largest publicly traded platforms for renewable power and decarbonization solutions. The company’s diversified portfolio consists of hydroelectric, wind, solar, distributed energy, and sustainable solutions across five continents.
Brookfield Renewable Corporation (NYSE:BEPC) garnered increased investor attention on October 15 when JPMorgan raised the stock’s price target from $41 to $44, while keeping an ‘Overweight’ rating on its shares. The update comes as the analyst increased targets in the clean energy sector ahead of the coming Q3 reports and noted that the utility-scale operators remain best positioned, while residential players are likely more mixed.
Brookfield Renewable Corporation (NYSE:BEPC)’s long-term, fixed-rate power purchase agreements (PPAs) provide it with the stable cash flows to cover its impressive 3.69% annual dividend yield. The utility is forecasting more than 10% annual FFO per share growth through 2030, with a target to raise its cash distributions by 5% to 9% annually.
11. Dominion Energy, Inc. (NYSE:D)
No. of Hedge Fund Investors: 29
Dividend Yield as of Oct. 22: 4.38%
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.
Dominion Energy, Inc. (NYSE:D) enjoys a unique position in Virginia’s ‘Data Center Alley’, serving the largest cluster of power-hungry data centers in the world. As of late last year, the company had approximately 40 GW of data center capacity contracted, with plans to double that in the coming years. Dominion plans to invest over $50 billion through 2029 to support this expanding power demand, allowing it to grow its EPS by 5% to 7% annually.
Dominion Energy, Inc. (NYSE:D)’s Coastal Virginia Offshore Wind project – a 2.6 GW project that will supply clean energy to 660,000 customers – also remains on track. The offshore wind farm is only a few months away from first power delivery to customers in early 2026, and is still on schedule for full completion at the end of next year.
Earlier this month, Barclays analyst Nicholas Campanella raised the firm’s price target on Dominion Energy, Inc. (NYSE:D) from $60 to $63, while keeping an ‘Overweight’ rating on its shares. With the Q3 report coming up, the analyst has highlighted the utility’s fundamentals as intact.
With an annual dividend yield of 4.34%, Dominion Energy, Inc. (NYSE:D) was also recently included on our list of the 12 Best Nuclear Power Dividend Stocks to Buy Now.
10. OGE Energy Corp. (NYSE:OGE)
No. of Hedge Fund Investors: 32
Dividend Yield as of Oct. 22: 3.66%
OGE Energy Corp. (NYSE:OGE), through its subsidiary, operates as an energy services provider in the United States. With about 7,116 megawatts of capacity, the company generates, transmits, distributes, and sells electric energy.
OGE Energy Corp. (NYSE:OGE) received a lift on October 22 after Jefferies raised the stock’s price target from $52 to $55, while keeping a ‘Buy’ rating on its shares. The analyst expects a mostly positive “super cycle” of updates in the third quarter, with messages of “capex up & cost of capital down” from the utilities sector.
OGE Energy Corp. (NYSE:OGE) remains focused on expansion, with the aim of adding approximately 550 MW of capacity to meet the growing customer demand. This includes the new natural gas combustion turbines at Tinker as well as at Horseshoe Lake Units 11 and 12. These units are expected to be operational within the next year.
OGE Energy Corp. (NYSE:OGE) declared a quarterly dividend of $0.425 per share last month and boasts an annual dividend yield of 3.66% as of the writing of this piece.
