15 Utility Stocks with Highest Dividends

In this article, we are going to discuss the 15 utility stocks with highest dividends.

As of the writing of this piece, the S&P Utilities index has surged by 7.16% since the beginning of 2026. This compares to a decline of 3.52% posted by the overall S&P 500 during the period.

According to the analysts at Jefferies, the US utilities sector is not expected to be directly impacted by the conflict in Iran, as the ongoing AI boom and ballooning data center demand continue to drive growth. Traditionally known as a safe-haven sector, utilities are typically less cyclical and have performed well across various economic backdrops. Many industry players operate under contracted or regulated pricing, offering predictable cash flows and often above-average dividends to investors. This makes them particularly attractive for retirement and income-focused investors, as well as those seeking more defensive holdings.

The US electricity demand surged to a record high in 2025 and remains on track to achieve further growth also in 2026 and 2027. This positions the utilities sector well to continue delivering strong growth and also sustain its high shareholder returns in the future.

With that said, here are the Utility Stocks with the Highest Dividends to Buy Now.

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Our Methodology

To collect data for this article, we referred to several stock screeners to find utility stocks that had an annual dividend yield of at least 3% as of April 7, 2026. The following are the Utility Stocks with the Highest Dividends. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

15. ONE Gas, Inc. (NYSE:OGS)

Dividend Yield as of April 7: 3.04%

ONE Gas, Inc. (NYSE:OGS) provides natural gas distribution services to more than 2.3 million customers in Kansas, Oklahoma, and Texas.

On March 23, Morgan Stanley analyst David Arcaro bumped the firm’s price target on ONE Gas, Inc. (NYSE:OGS) from $79 to $84, while maintaining an ‘Equal Weight’ rating on the shares.

The revision comes as Morgan Stanley updated the price targets for the North American Regulated & Diversified Utilities / IPPs under its coverage. The overall utilities sector surged by almost 22% in February, compared to gains of just under 14% posted by the broader market.

Moreover, the analyst firm believes that the recent discussions in the utilities sector have been overall constructive, with industry players highlighting growth opportunities and expressing optimism regarding load growth. Additionally, a number of companies have also signed multi-year deals with data centers, further adding to the positive outlook.

ONE Gas, Inc. (NYSE:OGS) also remains optimistic, with a target to grow its long-term adjusted net income by 7% to 9% and adjusted EPS by 5% to 7%, using adjusted 2025 actual results as the baseline for 2026–2030.

14. The Southern Company (NYSE:SO)

Dividend Yield as of April 7: 3.06%

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.

On March 23, Morgan Stanley increased its price target on The Southern Company (NYSE:SO) from $91 to $94, while keeping an ‘Underweight’ rating on the shares.

The revision comes after Morgan Stanley updated its estimates for the North American Regulated & Diversified Utilities / IPPs under its coverage. The utilities sector delivered a strong performance in February, with gains of almost 22%, against a surge of just under 14% delivered by the overall market. Moreover, the analyst highlighted that the recent discussions in the space have been constructive overall, with industry players expressing optimism over growth opportunities and load growth. A number of utilities have also recently signed long-term data center deals with tech giants, further adding to the bullish sentiment.

To keep up with the growing demand, The Southern Company (NYSE:SO) announced in February that it had raised its capital investment plan to $81 billion over the next 5 years, up almost 30% from its guidance last year.

13. DTE Energy Company (NYSE:DTE) 

Dividend Yield as of April 7: 3.14%

DTE Energy Company (NYSE:DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide.

On March 26, BMO Capital reduced its price target on DTE Energy Company (NYSE:DTE) from $157 to $148, while maintaining a ‘Market Perform’ rating on the shares.

DTE Energy Company (NYSE:DTE) is currently trading at a full multiple point below its historical premium average. However, BMO Capital expects the stock to remain range-bound in the near-term as the market awaits continued progress on the utility’s full-year guidance and favorable regulatory developments, especially in the upcoming electric rate case.

Earlier this year, DTE Energy Company (NYSE:DTE) announced a $6.5 billion increase in its 5-year capital investment plan, which now stands at $36.5 billion. The uptick is driven by ‘investments for the first data center project and the continued need to modernize the utility’s assets’.

DTE Energy Company (NYSE:DTE) expects its operating EPS to be in the range of $7.59 to $7.73 per share for FY 2026, indicating a 6% to 8% growth over the midpoint of its 2025 guidance. The company also reaffirmed its long-term target to deliver EPS growth of 6% to 8% through 2030.

12. Duke Energy Corporation (NYSE:DUK)

Dividend Yield as of April 7: 3.23%

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.

Duke Energy Corporation (NYSE:DUK) announced on March 26 that it had secured approval from the Public Service Commission of South ‌Carolina for its plan to build a new natural gas-fired ​generation plant in Anderson County. The commission’s green light follows a thorough and very public process that included a public hearing in Anderson.

Construction on the project is set to begin in summer 2027, with the plant expected to be fully operational by early 2031. The facility is estimated to generate 2,200 jobs during the construction phase, including around 746 jobs within Anderson County itself. Moreover, the project is expected to generate an annual ​statewide economic ​impact ⁠of about $84 million once operational.

Tim Pearson, Duke Energy South Carolina President, commented:

“We appreciate the commission’s recognition that the Anderson County combined cycle natural gas power plant is the right resource at the right time at the right site. Adding proven new natural gas technology to the electric grid acknowledges and responds to the efforts of state leaders to address tremendous electricity generation needs as part of a reliable and diverse energy mix that includes new and existing nuclear technology, renewables, battery storage, additional natural gas and energy efficiency programs.”

Duke Energy Corporation (NYSE:DUK) recently outlined a $16 billion increase in its 5-year capital plan to $103 billion, calling it the ‘largest fully regulated capital plan in the industry’.

11. WEC Energy Group, Inc. (NYSE:WEC)

Dividend Yield as of April 7: 3.26%

WEC Energy Group, Inc. (NYSE:WEC) provides regulated natural gas and electricity, and renewable and nonregulated renewable energy services in the United States.

On March 24, Barclays analyst Nicholas Campanella slightly raised the firm’s price target on WEC Energy Group, Inc. (NYSE:WEC) from $110 to $111, while keeping an ‘Equal Weight’ rating on the shares. The revised target comes after the analyst firm hosted meetings with the company management. Barclays expects the ‘strong momentum’ on large loads in Wisconsin to drive further asset base revisions.

Earlier this year, Microsoft received approval to build 15 more data centers in Wisconsin, with the expansion bringing WEC’s demand forecast in the area to 2.6 gigawatts by 2030. Similarly, Vantage Data Centers is also adding to the energy demand on the utility’s turf, with the developer signing deals to build data centers for Oracle and OpenAI. As a result, WEC Energy Group, Inc. (NYSE:WEC) announced in its last earnings call that it would increase its capital spending by $1 billion over the next five years to cater to the growing energy needs.

WEC Energy Group, Inc. (NYSE:WEC) was also recently included in our list of the 10 Best Stocks to Invest in During a Recession.

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

Dividend Yield as of April 7: 3.28% 

Next on our list of the Utility Stocks with Highest Dividends is Public Service Enterprise Group Incorporated (NYSE:PEG), a predominantly regulated energy company that engages in the provision of electric and gas services.

On March 23, Morgan Stanley analyst David Arcaro upped the firm’s price target on Public Service Enterprise Group Incorporated (NYSE:PEG) from $90 to $94, while maintaining an ‘Overweight’ rating on the shares.

The raised target, which indicates an upside of almost 16% from the current levels, comes as Morgan Stanley revised its price targets in the North American Regulated & Diversified Utilities / IPPS under its coverage. The analyst firm highlighted the sector’s strong performance in February, when it delivered gains of almost 22%, against a surge of just under 14% posted by the overall market.

The analyst believes that the recent discussions in the utilities sector have been largely constructive, with companies highlighting growth opportunities and expressing optimism regarding load growth. A number of utilities have also signed long-term supply deals with data centers, further adding to the positive outlook.

Given the increasing energy demand, Public Service Enterprise Group Incorporated (NYSE:PEG) also recently bumped up its capital program from $24 billion to $28 billion for 2026–2030, in addition to raising its long-term adjusted earnings growth outlook to 6%-8% through the end of the decade.

9. Exelon Corporation (NASDAQ:EXC) 

Dividend Yield as of April 7: 3.43%

Exelon Corporation (NASDAQ:EXC) is one of the country’s largest utility companies, serving more than 10 million customers through six fully regulated transmission and distribution utilities.

On April 2, BMO Capital slightly raised its price target on Exelon Corporation (NASDAQ:EXC) from $51 to $52, while keeping an ‘Outperform’ rating on the shares. The revised target reflects an upside of over 6% from the current levels.

The development comes after the Maryland Public Service Commission delivered its much-awaited final order on Pepco’s initial multi-year rate plan, including a reconciliation for the third rate year. The commission approved a $13.36 million increase in Pepco’s rates in its decision. BMO Capital also highlighted Exelon Corporation (NASDAQ:EXC)’s low-risk transmission and distribution business profile, strong and visible fundamental growth outlook, and supportive regulatory environment, which make the company well-positioned to drive multiple expansions.

Exelon Corporation (NASDAQ:EXC) was also recently included in our list of the 15 Best Electric Utility Stocks to Invest in Now.

8. OGE Energy Corp. (NYSE:OGE)

Dividend Yield as of April 7: 3.47% 

OGE Energy Corp. (NYSE:OGE) is a holding company whose primary investment provides electricity in Oklahoma and western Arkansas.

On March 25, Argus raised its price target on OGE Energy Corp. (NYSE:OGE) from $47 to $52, while keeping a ‘Buy’ rating on the shares. The revised target reflects an upside of almost 2% from the current share price.

Argus highlighted OGE Energy Corp. (NYSE:OGE)’s steady EPS growth of around 5%, with a similar forecast for the ongoing year and the next. The analyst firm remains optimistic regarding the utility’s visible forward earnings stream, stringent cost controls, and well-run generation facilities. Moreover, Argus outlined OGE’s relatively high annual dividend yield of 3.50%, which also places it on our list of the 15 Best Dividend Leaders to Buy Right Now.

OGE Energy Corp. (NYSE:OGE) has forecasted consolidated earnings of $2.43 per share for FY 2026, indicating a 7% increase from the 2025 midpoint. The company set a long-term EPS growth target of 5%–7%, with expectations to deliver in the top half of the range in 2027 and 2028.

7. Pinnacle West Capital Corporation (NYSE:PNW)

Dividend Yield as of April 7: 3.56%

Pinnacle West Capital Corporation (NYSE:PNW) is an energy holding company that conducts business through its subsidiaries, Arizona Public Service Company, El Dorado Investment Company, and Pinnacle West Power.

On March 31, Barclays increased its price target on Pinnacle West Capital Corporation (NYSE:PNW) from $97 to $101, while keeping an ‘Equal Weight’ rating on the shares.

Pinnacle West Capital Corporation (NYSE:PNW) posted earnings of $5.05 per share in full-year 2025, landing in the upper half of its updated guidance range. While this is below the EPS of $5.24 delivered in 2024, the decline was primarily weather-driven. The company also managed to achieve total customer growth of 2.4% last year, standing at the high end of its guidance range.

Pinnacle West Capital Corporation (NYSE:PNW) is now targeting earnings in the range of $4.55 to $4.75 per share for full-year 2026, while reaffirming its long-term sales growth guidance of 5% to 7% through 2030.

Pinnacle West Capital Corporation (NYSE:PNW) boasts a robust annual dividend yield of 3.56%, putting it among the 11 Best Utility Stocks to Buy for Dividends in 2026.

6. National Grid plc (NYSE:NGG)

Dividend Yield as of April 7: 3.57%

Next on our list of Utility Stocks with the Highest Dividends is National Grid plc (NYSE:NGG). The company engages in the transmission and distribution of electricity and gas. It operates through UK Electricity Transmission, UK Electricity Distribution, New England, New York, National Grid Ventures, and other segments.

National Grid plc (NYSE:NGG) received a boost on April 2 when JPMorgan analyst Pavan Mahbubani bumped the firm’s price target on the stock from £1,250 to £1,450, while maintaining an ‘Overweight’ rating on the shares. The revised target indicates an upside potential of almost 10% from the current share price.

National Grid plc (NYSE:NGG) is targeting a strong operational performance across the group in its full-year 2026, with underlying EPS forecasted to be in line with the 6-8% CAGR range from the 2024/25 baseline of 73.3p. Meanwhile, the overall group capital investment for continuing operations is expected to be over £11 billion in the current year.

That said, the analysts over at Jefferies turned bearish on the stock last month, downgrading it from ‘Buy’ to ‘Hold’ (read the details here).

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