In this article, we discuss the 5 best utility stocks to buy now. If you want to read our detailed analysis of the utility sector and stocks, go directly to read the 11 Best Utility Stocks to Buy Now.
5. Brookfield Asset Management Inc. (NYSE:BAM)
Number of Hedge Fund Holders: 34
Brookfield Asset Management Inc. (NYSE:BAM) is an alternative asset management company that focuses on investment in renewable power. The company’s functions involve the distribution of midstream and other products through pipelines and ports. Brookfield Asset Management Inc. (NYSE:BAM) is one of the best utility stocks to buy now.
On September 19, Brookfield Asset Management Inc. (NYSE:BAM) announced to acquire an Australian power infrastructure firm, in a deal worth $7 billion to meet the growing demand for renewable energy. In Q2 2021, Brookfield Asset Management Inc. (NYSE:BAM) reported an FFO of $1.01, beating the estimates by $0.28. The company’s revenue for the quarter stood at $18.29 billion, driven massively by the company’s capital recycling initiatives. This August, BMO Capital lifted its price target on Brookfield Asset Management Inc. (NYSE:BAM) to C$61, while maintaining an ‘Outperform’ rating on the shares. The company pays an annual dividend of $0.52 per share, yielding 0.92% and has been increasing its dividend for the past two years.
As of Q2 2021, 34 hedge funds tracked by Insider Monkey have positions in Brookfield Asset Management Inc. (NYSE:BAM), valued at $1.65 billion. The number of hedge funds having stakes in the company was the same in the previous quarter. Akre Capital Management is the company’s leading shareholder with over 13 million shares.
Baron Funds mentioned Brookfield Asset Management Inc. (NYSE:BAM) in its second-quarter 2021 investor letter. Here is what the firm has to say:
“The shares of long-term holding Brookfield Asset Management Inc. gained 15% in the most recent quarter. The company is a leading alternative asset manager focused on investing in high-quality real estate and infrastructurerelated assets that tend to generate predictable and growing cash flows. We remain bullish about the ongoing prospects for Brookfield given the secular growth opportunity for alternative assets, the company’s many competitive advantages including scale, global capabilities, its well known brand name, operating expertise, and performance track record. We hold management in high regard and believe the shares remain attractively valued.”
4. Exelon Corporation (NASDAQ:EXC)
Number of Hedge Fund Holders: 35
Exelon Corporation (NASDAQ:EXC), one of the best utility stocks to buy, pays an annual dividend of $1.53 per share, yielding 2.83%. It is an American electric power generation company that also owns low-cost power generation fleets. The company has the largest customer base in the U.S.
On September 29, Exelon Corporation (NASDAQ:EXC) announced its plans to invest over $140 million into nuclear plants over the next five years. This investment is aimed to replace transformers and upgrade fiber optic control systems in the concerned areas. In Q2 2021, Exelon Corporation (NASDAQ:EXC) posted an EPS of $0.89, beating the estimates by $0.22. The company’s utilities segment announced to reduce operation-driven emissions by 50% by 2050. Recently, BMO Capital lifted its price target on Exelon Corporation (NASDAQ:EXC) to $55, with an ‘Outperform’ rating on the shares, highlighting the company’s comprehensive clean energy legislation.
As of Q2 2021, 35 hedge funds tracked by Insider Monkey have positions in Exelon Corporation (NASDAQ:EXC), compared with 44 in the previous quarter. These stakes are valued at over $1.1 billion.
3. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 36
Duke Energy Corporation (NYSE:DUK) is American electric power and natural gas holding company that serves over 7.4 million customers in the country. Over 3.87% yield and 14 years of consistent dividend growth make Duke Energy Corporation (NYSE:DUK) one of the best utility stocks to buy now.
As of Q2 2021, 36 hedge funds tracked by Insider Monkey have positions in Duke Energy Corporation (NYSE:DUK), up from 34 in the previous quarter. These stakes are valued at $566.1 million. With 1.2 million shares, D.E. Shaw is the company’s leading shareholder.
2. The Southern Company (NYSE:SO)
Number of Hedge Fund Holders: 37
The Southern Company (NYSE:SO) is an American gas and utility holding company that also provides wholesale energy and customized energy solutions to its consumers.
In September, Guggenheim lifted its price target on The Southern Company (NYSE:SO) to $72, while upgrading the stock to ‘Buy’. The firm’s analyst Shahriar Pourreza believes that the company is an attractive entry point for investors in 2022 due to its long-term earnings profile.
The Southern Company (NYSE:SO) has increased its dividend by 10.43% in the past three years and pays an annual dividend of $2.64 per share, yielding 4.26%.
As of Q2 2021, 37 hedge funds tracked by Insider Monkey have positions in The Southern Company (NYSE:SO), up from 35 in the previous quarter. These stakes are valued at $606.4 million.
1. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 59
NextEra Energy, Inc. (NYSE:NEE) tops our list of the best utility stocks to buy now. It is an American energy company with generating capacity reaching 58 GW. The company is the largest generator of renewable energy from wind and sun.
This July, Credit Suisse assumed its coverage on NextEra Energy, Inc. (NYSE:NEE) with an ‘Outperform’ rating and an $85 price target.
NextEra Energy, Inc. (NYSE:NEE) has a track record of 26 years of consistent dividend growth. The company pays an annual dividend of $1.54 per share, yielding 1.98%.
Of the 873 hedge funds tracked by Insider Monkey, 59 hedge funds have positions in NextEra Energy, Inc. (NYSE:NEE) in Q2, compared with 63 in the previous quarter. The total value of these stakes is over $2.6 billion. Fisher Asset Management is the company’s leading shareholder, with shares valued at $1.03 billion.
You can also take a look at Top 10 Electric Utility Dividend Stocks to Buy and 10 Best Electric Utility Stocks to Buy Now
