5 Best Utility Stocks To Buy Now

4. AES Corporation (NYSE:AES)

Market cap as of March 28: $15.33 Billion
Number of Hedge Fund Holders: 44

AES Corporation (NYSE:AES) is a Virginia-based utility company with worldwide operations, including in South and Central America, the Caribbean, Europe, and Asia. Its power generation portfolio boasts almost 32,000 megawatts, enough energy to power up to 28 million homes.

Recently, AES Corporation (NYSE:AES) announced a partnership with Air Products and Chemicals to build a $4 billion hydrogen production facility in Texas, scheduled to begin operations by 2027. AES is also making strides toward becoming carbon-neutral as an electricity provider.

AES Corporation (NYSE:AES) is exceeded analysts’ expectations in Q4 earnings, reporting revenue of $3.06 billion, a more than 10% increase from the previous year and nearly double the expected $1.58 billion. Earnings per share of 49 cents also beat expectations by 3 cents.

AES Corporation (NYSE:AES) is a top dividend stock that has increased its dividend for 10 consecutive years. The company has seen a 24.2% rise in share price over the past 12 months, outperforming the S&P 500. AES also offers a 3.02% dividend yield as of March 28, making it an attractive choice for investors seeking both income and growth potential.

The AES Corporation (NYSE:AES) was a popular stock among hedge funds in the fourth quarter of 2022, as 44 funds tracked by Insider Monkey reported owning stakes in the company. The total value of these holdings is around $1.34 billion. With 17.94 million shares, Orbis Investment Management is the company’s notable stakeholder in Q4.

Massif Capital made the following comment about The AES Corporation (NYSE:AES) in their fourth quarter 2022 investor letter:

“We currently have roughly 13% of the portfolio allocated to two utilities: The AES Corporation (NYSE:AES) and Polaris (PIF). We invested in AES in December 2020 at an average entry price of $21.3 and invested in PIF in July 2020 at an average entry price of 16.36 CAD. We are currently underwater on PIF and making money in AES. Our near-term outlook for both positions is mixed. AES had a solid year in 2022, up 13%; it has telegraphed growth in earnings and cash flow through 2025 and seems to be hitting its targets. We will have to see what the year holds for utilities and AES, but another year like last year, and the firm will be touching our full value expectations.”