In this article, we are going to discuss the best utility dividend stock to buy now.
The utilities sector has outperformed the wider market so far this year, with the S&P 500 Utilities index jumping by almost 15% since the beginning of 2025, against gains of just around 12.5% by the overall S&P 500. The growth comes amid a record demand for electricity, primarily attributed to the rise of artificial intelligence and the proliferation of data centers, in addition to the electrification of transport and industry.
According to the Energy Information Administration, the US demand for electricity is expected to consistently hit record highs in the coming years, and the utilities sector is digging deep into its pockets to keep up. According to figures from the Edison Electric Institute, investor-owned utilities are on track to spend nearly $208 billion on grid upgrades and expansions this year, the highest amount ever. Moreover, the sector is expected to spend $1.1 trillion in capital investments through 2029 to make sure it has enough energy available to power the AI revolution.
With that said, here are the Best Dividend Stocks in the Utilities Sector.
Our Methodology
To collect data for this article, we observed various companies operating in the utilities sector and then shortlisted the ones with annual dividend yields of over 3%, as of November 21, 2025. The following are the Best Utility Dividend Stocks to Buy Now.
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).
14. Public Service Enterprise Group Incorporated (NYSE:PEG)
Dividend Yield as of Nov. 21: 3.1%
Public Service Enterprise Group Incorporated (NYSE:PEG) is a predominantly regulated energy company that engages in the provision of electric and gas services.
With a dividend history of 118 consecutive years, Public Service Enterprise Group Incorporated (NYSE:PEG) is known for its commitment to shareholders. On November 18, the company maintained this commitment by announcing a quarterly dividend of $0.63 per share to all shareholders as of the December 10 record date, payable on December 31, 2025.
It needs mentioning that Public Service Enterprise Group Incorporated (NYSE:PEG) reported better-than-expected results for its third quarter earlier this month, witnessing a double-digit YoY growth in both revenue and profits, driven primarily by the implementation of new electric and gas base distribution rates that took effect in October 2024. As a result, the company narrowed its FY 2025 earnings guidance to $4 to $4.06 per share from $3.94 to $4.06 per share previously.
Public Service Enterprise Group Incorporated (NYSE:PEG) also reaffirmed its adjusted operating earnings growth outlook of 5% to 7% through 2029, helped by its 5-year $22.5 billion – $26 billion capital investment program.
13. The Southern Company (NYSE:SO)
Dividend Yield as of Nov. 21: 3.32%
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. Together with its subsidiaries, the company delivers clean, safe, reliable, and affordable energy to its 9 million customers.
The Southern Company (NYSE:SO) received a blow on November 20 when Barclays lowered the stock’s price target from $98 to $91, but kept an ‘Equal Weight’ rating on its shares, according to a report by The Fly.
On the same day, Morgan Stanley analyst David Arcaro also lowered the firm’s price target on The Southern Company (NYSE:SO) from $99 to $97, while maintaining an ‘Equal Weight’ rating on its shares. The adjustment is a part of the analyst firm updating its price targets for Regulated & Diversified Utilities / IPPs in North America under its coverage, highlighting that utilities underperformed the wider market last month.
The Southern Company (NYSE:SO) reported its Q3 results on October 30, with its adjusted earnings of $1.6 per share topping expectations by $0.09, primarily due to the ‘continued investment in its state-regulated utilities, along with strong customer growth and increased customer usage’. However, the company’s revenue of $7.82 billion fell below estimates by around $100 million, despite a 7.5% YoY increase. SO also declared a quarterly dividend of $0.74 per share last month and currently boasts an impressive annual dividend yield of 3.32%.
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