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.
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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%.
12. Duke Energy Corporation (NYSE:DUK)
Dividend Yield as of Nov. 21: 3.47%
Duke Energy Corporation (NYSE:DUK) engages in the distribution of natural gas and energy-related services. The company owns and operates a diverse mix of regulated power plants, including hydro, coal, nuclear, natural gas, solar, and battery storage.
On November 20, Morgan Stanley analyst David Arcaro trimmed the firm’s price target on Duke Energy Corporation (NYSE:DUK) from $136 to $133, while maintaining an ‘Equal Weight’ rating on its shares, as reported by The Fly. The adjustment comes on the back of the firm updating its price targets for the overall Regulated & Diversified Utilities / IPPs in North America under its coverage. Moreover, the analyst noted that the utilities sector underperformed the wider market in October.
In other news, Duke Energy Corporation (NYSE:DUK) revealed this week that it is asking North Carolina regulators to approve a hike of around 15% in its rates over the next two years, which would see its residential customers paying an additional $20 to $30 per month by 2028. The utility has also requested regulators to increase rates for commercial and industrial customers, but those hikes will be relatively smaller in comparison. The development comes as Duke looks to propose new investments in North Carolina to boost reliability and keep up with the rising demand.
11. Exelon Corporation (NASDAQ:EXC)
Dividend Yield as of Nov. 21: 3.5%
Next on our list of the Best Utility Dividend Stocks is Exelon Corporation (NASDAQ:EXC), one of the country’s largest utility companies, serving more than 10.7 million customers through six fully regulated transmission and distribution utilities.
On November 20, Morgan Stanley analyst David Arcaro lowered the firm’s price target on Exelon Corporation (NASDAQ:EXC) from $53 to $52, while maintaining an ‘Equal Weight’ rating on its shares, as reported by The Fly. The update comes as a result of the analyst firm adjusting its price targets for Regulated & Diversified Utilities / IPPs in North America under its coverage, while highlighting that the utilities sector underperformed the overall market last month.
Exelon Corporation (NASDAQ:EXC) reported better-than-expected results for its third quarter earlier this month, beating estimates in both profits and revenue due to slightly warmer weather and a mild storm season, along with timing-related drivers. The company also reaffirmed its operating earnings guidance of $2.64 to $2.74 per share for FY 2025. Exelon is targeting an annualized operating earnings growth rate of 5% to 7% through 2028.
10. Brookfield Renewable Corporation (NYSE:BEPC)
Dividend Yield as of Nov. 21: 3.62%
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.
On November 7, Barclays reiterated its ‘Hold’ rating on Brookfield Renewable Corporation (NYSE:BEPC), assigning the stock a price target of $35, according to a report by The Fly. The target represents a downside of over 15% from its current market price.
It needs mentioning that Brookfield Renewable Corporation (NYSE:BEPC) soared to a multi-year high earlier this month when the company announced its third-quarter results, despite falling below estimates. However, Brookfield’s FFO grew by almost 10% YoY to $302 million in the quarter, benefiting from solid operating performance, growth from development activities, and accretive acquisitions. The energy provider expects to achieve its target of over 10% FFO per unit growth this year.
Moreover, Brookfield Renewable Corporation (NYSE:BEPC) highlighted the partnership that it signed with the US government last month, which is expected to significantly accelerate the deployment of Westinghouse’s leading reactor technology domestically and abroad, driving substantial growth for the company in the coming year.
Brookfield Renewable Corporation (NYSE:BEPC) offers a robust annual dividend yield of 3.62% as of the writing of this piece. The company stays committed to its shareholders, with aim to deliver 5% to 9% annual dividend growth over the long term.
9. FirstEnergy Corp. (NYSE:FE)
Dividend Yield as of November 19: 3.8%
FirstEnergy Corp. (NYSE:FE)’s 10 electric distribution companies form one of America’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York.
FirstEnergy Corp. (NYSE:FE) suffered a blow on November 20 when the company was ordered by the Ohio Public Commission to cough up more than $250 million in penalties and refunds, as a result of its misconduct in a sweeping Statehouse bribery scandal five years ago. The company has previously admitted to paying hefty bribes to state officials to pursue legislation that would benefit it, and also agreed to pay $230 million to avoid persecution. However, the utility commissioners still want the energy giant to face regulatory consequences for its actions.
FirstEnergy Corp. (NYSE:FE) stated the following regarding the development:
“Today’s PUCO decision regarding the legacy audits closes a chapter tied to activities that do not represent the company we are today. Between 2025 and 2029, we plan to invest $7.3 billion in our Ohio transmission and distribution infrastructure, people, processes and facilities.”
8. OGE Energy Corp. (NYSE:OGE)
Dividend Yield as of November 19: 3.84%
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) announced on November 20 that it has launched a public offering of $345 million worth of common stock, while also granting underwriters an option to purchase up to $51.75 million in additional shares. The company intends to use the proceeds to fund capital expenditures, including the Horseshoe Lake generating units 13 and 14 and the Ft. Smith to Muskogee Transmission line, as well as for general corporate purposes, including debt repayment or refinancing.
In other news, Mizuho reiterated its ‘Buy’ rating on OGE Energy Corp. (NYSE:OGE) on November 17, while assigning a target of $47, representing an upside potential of 6.5%. Moreover, Wells Fargo also reiterated its ‘Hold’ rating on the stock on November 19.
7. UGI Corporation (NYSE:UGI)
Dividend Yield as of Nov. 21: 3.99%
UGI Corporation (NYS:UGI) is an international distributor and marketer of energy products and services, including natural gas, LPG, electricity, and renewable solutions, with well-developed infrastructure in key markets.
UGI Corporation (NYS:UGI) reported its FY 2025 results on November 20, with its adjusted earnings of $3.32 per share coming above expectations by $0.14 and exceeding its revised guidance range. Net income for the year grew significantly by 152% YoY to $678 million. However, the company’s revenue of around $7.3 billion fell just below estimates by $120 million, despite a slight growth of 1.1%.
UGI Corporation (NYS:UGI) also bolstered its balance sheet by generating approximately $530 million of free cash flow, inclusive of cash generated from asset sales. The energy firm provided an adjusted EPS guidance range of $2.90 – $3.152 per diluted share for FY 2026, assuming normal weather and the current tax regime.
UGI Corporation (NYS:UGI) declared a dividend of $0.375 per share to all shareholders as of the December 15 record, payable on January 1, 2026. With a hefty annual dividend yield of 3.99% as of the writing of this piece, UGI was included in our list of the 12 Best Dividend Stocks with Yields Above 4%.
6. Northwest Natural Holding Company (NYSE:NWN)
Dividend Yield as of November 19: 4.1%
Northwest Natural Holding Company (NYSE:NWN) operates natural gas distribution utilities serving the Pacific Northwest and Texas, as well as water and wastewater utilities serving customers across six states.
Northwest Natural Holding Company (NYSE:NWN) received a lift on November 12 when Stifel analyst Selman Akyol raised the stock’s price target from $50 to $52, while maintaining a ‘Buy’ rating on its shares after updating the firm’s estimates post the quarter, as reported by The Fly.
In other news, Northwest Natural Holding Company (NYSE:NWN) posted mixed results for its third quarter earlier this month, with its adjusted loss per share of $0.73 beating estimates by $0.1. However, the company’s revenue of $164.7 million missed expectations by over $10 million, despite a 20% YoY increase. The growth comes on the back of NWN posting a combined utility customer growth rate of 10.9% for the 12 months ending September 30, primarily attributed to gas utility acquisitions in Texas. The utility expects its FY 2025 results to be above the midpoint of its adjusted earnings range of $2.75 per share to $2.95 per share.
Northwest Natural Holding Company (NYSE:NWN) remains strongly committed to its shareholders, with the company’s Board approving a dividend increase in the fourth quarter, making this the 70th consecutive year of annual dividend increases. NWN is one of only three companies on the New York Stock Exchange boasting this outstanding record.
5. Portland General Electric Company (NYSE:POR)
Dividend Yield as of Nov. 21: 4.24%
Next on our list of the Best Utility Stocks for Dividends is Portland General Electric Company (NYSE:POR), an integrated electric utility company, engaged in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in the state of Oregon.
On November 19, Portland General Electric Company (NYSE:POR) was downgraded by UBS from ‘Buy’ to ‘Neutral’, while its price target remained unchanged at $51, according to a report by The Fly. With POR posting gains of almost 20% over the last six months, the firm cited valuation for the downgrade. Moreover, the analyst highlighted that the Oregon Public Utility Commission approval catalyst is seven months away in June next year.
In other news, Portland General Electric Company (NYSE:POR) reported an earnings beat in its third quarter recently, primarily due to the booming demand from data centers. However, the company’s revenue of $952 million fell just short of estimates by almost $32 million, despite a YoY growth of around 2.5%. Notably, the utility reported a 13% surge in industrial demand during the quarter, led by data centers and semiconductor manufacturers.
Portland General Electric Company (NYSE:POR) kept its FY 2025 adjusted earnings guidance steady at $3.13 to $3.33 per share. Moreover, the company reaffirmed its long-term EPS and dividend growth guidance of 5% to 7%, and its long-term growth guidance of 3% through 2029.
4. Dominion Energy, Inc. (NYSE:D)
Dividend Yield as of Nov. 21: 4.34%
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.
On November 20, Morgan Stanley lowered its price target on Dominion Energy, Inc. (NYSE:D) from $66 to $65, while maintaining an ‘Equal Weight’ rating on its shares, as reported by The Fly. The adjustment comes as the analyst firm updates its price targets for Regulated & Diversified Utilities / IPPs in North America under its coverage. The analyst highlighted that the utilities sector underperformed the overall market in October.
In other news, a Bloomberg report on November 19 revealed that Dominion Energy, Inc. (NYSE:D) is in talks to acquire the Northern Virginia Electric Cooperative, in a move that would allow the utility to serve the cluster of data centers in Northern Virginia. While Dominion could ink the deal in the coming months, no decision has been made yet.
Dominion Energy, Inc. (NYSE:D) stated in its Q3 earnings call that it continues to see a rising demand for data centers. The company is currently in various stages of contracting to provide these power-hungry centers with 47 GW of capacity, up 17% from around 40 GW as of December 2024.
3. Eversource Energy (NYSE:ES)
Dividend Yield as of Nov. 21: 4.66%
Eversource Energy (NYSE:ES) operates New England’s largest energy delivery system and serves customers in Connecticut, Massachusetts, and New Hampshire.
Eversource Energy (NYSE:ES) slumped heavily this week after Connecticut regulators stopped the company from selling its water utility Aquarion for $2.4 billion. According to the regulators, the deal fails managerial suitability and responsibility requirements, despite meeting standards in a number of areas. The decision marks a major blow for Eversource, which is currently struggling with organizational sprawl and high long-term debt.
Following the development, Scotiabank lowered its price target on Eversource Energy (NYSE:ES) from $64 to $63, while keeping an ‘Underperform’ rating on its shares, as reported by The Fly. According to the analyst, things can get worse before they start to get better for the utility, despite its cheap valuation. Moreover, Eversource remains Scotiabank’s least favorite regulated utility stock.
However, despite the setback, Eversource Energy (NYSE:ES) reaffirmed its FY 2025 adjusted EPS guidance of $4.72 – $4.80. The company also stays committed to its expected compound annual EPS growth rate of 5% to 7%, from a 2024 base of $4.57 per share.
2. Clearway Energy, Inc. (NYSE:CWEN)
Dividend Yield as of Nov. 21: 5.08%
With a portfolio that comprises approximately 11.8 GW of gross generating capacity in 26 states, Clearway Energy, Inc. (NYSE:CWEN) is one of the largest owners of clean energy generation assets in the United States.
On November 5, Clearway Energy, Inc. (NYSE:CWEN) reiterated its commitment to shareholders by announcing to increase its quarterly dividend by 1.62% to $0.4528 per share. The company boasts a robust annual dividend yield of 5.08% as of the writing of this piece, with its long-term power purchase agreements (PPAs) allowing it to generate stable cash flows and reliably pay dividends to shareholders.
Clearway Energy, Inc. (NYSE:CWEN)’s payout increase comes on the back of its impressive performance in the third quarter, with the company topping estimates and more than doubling its net income compared to last year, helped by lower tax expenses, new investments, and favorable wind patterns. Clearway also reaffirmed its long-term annual growth objective of 5% to 8%.
The share price of Clearway Energy, Inc. (NYSE:CWEN) has surged by over 35% since the beginning of 2025.
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.
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