12 Best Utility Stocks to Buy for Dividends

7. Public Service Enterprise Group Incorporated (NYSE:PEG)

No. of Hedge Fund Investors: 39

Dividend Yield as of Oct. 22: 3.01%

Public Service Enterprise Group Incorporated (NYSE:PEG) is a predominantly regulated energy company that engages in the provision of electric and gas services.

On October 22, Morgan Stanley raised its price target on Public Service Enterprise Group Incorporated (NYSE:PEG) from $103 to $109, and maintained an ‘Overweight’ rating on its shares. The revision is a part of the firm updating its price targets for Regulated & Diversified Utilities / IPPs in North America under its coverage. The analyst noted that utilities outperformed the S&P in September and expects a key focus for the sector to be on the evolution of data center pipelines as we head into the third-quarter reports.

Public Service Enterprise Group Incorporated (NYSE:PEG) is currently working on its 5-year $22.5 billion – $26 billion capital spending plan, with an aim to grow its adjusted operating earnings at a CAGR of 5% to 7% through 2029 at the nuclear PTC threshold.

Moreover, Public Service Enterprise Group Incorporated (NYSE:PEG) remains strongly committed to its shareholders, having paid dividends for 118 consecutive years. The utility increased its quarterly dividend by 5% to $0.63 per share in July, marking its 14th annual increase in a row.