14 Best Utility Dividend Stocks to Buy Now

1. The AES Corporation (NYSE:AES)

Dividend Yield as of Nov. 21: 5.12%

Topping our list of Best Utility Stocks for Dividends is The AES Corporation (NYSE:AES). AES, together with its subsidiaries, operates as a power generation and utility company in the United States and internationally.

The AES Corporation (NYSE:AES) received a boost on November 18 when Jefferies analyst Julien Dumoulin-Smith upgraded the stock from ‘Underperform’ to ‘Hold’, while also bumping its price target from $12 to $13, according to a report by The Fly. While the analyst does not expect AES to turn into a high-growth company, he acknowledged its progress in the data center space, as highlighted by its management in the Q3 earnings call. Moreover, while recent reports have indicated that BlackRock’s Global Infrastructure Partners is set to acquire AES in the coming days, Jeffries continues to see ‘significant hurdles’ to a potential deal.

Earlier this month, Mizuho also raised its price target on The AES Corporation (NYSE:AES) from $15 to $16, while maintaining an ‘Outperform’ rating on its shares.

It needs mentioning that The AES Corporation (NYSE:AES) reported mixed results for its third quarter on November 4, with its adjusted EPS of $0.75 falling just short of expectations by $0.02. However, the company’s FY 2025 adjusted EPS outlook of $2.10 to $2.26 remains unchanged, while it also reaffirmed its long-term annualized growth rate target of 7% to 9% through 2027, off a base of 2023 guidance.

While we acknowledge the potential of AES to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AES and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Renewable Energy Dividend Stocks to Buy Now and 11 Best High Yield Energy Stocks to Buy Now.

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