12 Best Utility Stocks to Buy Now According to Hedge Funds

8. The Southern Company (NYSE:SO)

Number of Hedge Fund Holders: 54

The Southern Company (NYSE:SO) is one of the largest producers of electricity in the United States and the largest wholesale provider in the Southeast.

On June 24, Morgan Stanley analyst David Arcaro upped the firm’s price target on The Southern Company (NYSE:SO) from $87 to $89, but reaffirmed an ‘Underweight’ rating on the shares. The raised target still reflects a downside of more than 8% from the current share price.

Morgan Stanley adjusted its price objectives for North American Regulated & Diversified Utilities / IPPs as part of its monthly update. The firm noted that the overall utilities sector posted a decline of 5.5% in May, significantly underperforming the gains of around 5.1% delivered by the broader S&P during the month.

The Southern Company (NYSE:SO) has an exceptional track record of having paid a quarterly dividend to its shareholders for 79 consecutive years. The utility has also increased its payouts for 25 straight years. With a robust annual dividend yield of 3.13%, SO is ranked among the 12 Best S&P 500 Stocks to Buy for Dividends.