In this article, we discuss 5 most profitable utility stocks now. If you want to see more most profitable utility stocks now, the risk/reward, and methodology of this list, go directly to 12 Most Profitable Utility Stocks Now.
5. Sempra (NYSE:SRE)
Net Income (TTM) as of September 30, 2022: $2.305 billion
Sempra (NYSE:SRE) is a leading energy infrastructure company with more than 20,000 employees and total assets of $72 billion at the end of 2021 that helps deliver energy to over 40 million consumers across North America. In terms of net income, Sempra (NYSE:SRE) had net income of $2.305 billion in the trailing twelve months as of September 30, 2022. In November, 2022, Sempra (NYSE:SRE) raised its FY 2022 adjusted EPS guidance range to $8.70-$9 and management also affirmed FY 2023 EPS guidance range of $8.60-$9.20.
4. American Electric Power Company, Inc. (NASDAQ:AEP)
Net Income (TTM) as of September 30, 2022: $2.462 billion
American Electric Power Company, Inc. (NASDAQ:AEP) is one of the largest electric companies in the United States with 26,000 megawatts of diverse generating capacity and a transmission network of more than 40,000 miles. As a utility, American Electric Power Company, Inc. (NASDAQ:AEP) also services around 5.5 million customers across 11 states. In terms of profitability, American Electric Power Company, Inc. (NASDAQ:AEP) had net income of $2.462 billion in the trailing twelve months ended September 30, 2022 according to YCharts.
3. Duke Energy Corporation (NYSE:DUK)
Net Income (TTM) as of December 31, 2022: $2.669 billion
Duke Energy Corporation (NYSE:DUK) is one of America’s largest holding companies with 8.2 million electric utility customers and 1.6 million natural gas customers through its subsidiaries. In terms of 2022, Duke Energy Corporation (NYSE:DUK) was also one of the most profitable utilities in the United States with net income of $2.669 billion according to YCharts, ranking #3 on our list of 12 Most Profitable Utility Stocks Now. For the future, In terms of the future, Duke Energy Corporation (NYSE:DUK) sees earnings growth of between 5% and 7% through 2027 off the midpoint 2023 guidance range of $5.65 per share based on adjusted EPS according to its fourth quarter 2022 earnings review and business update.
2. The Southern Company (NYSE:SO)
Net Income (TTM) as of September 30, 2022: $3.411 billion
The Southern Company (NYSE:SO) is a leading utility that’s one of the largest producers of electricity in the United States and also the largest wholesale provider of electricity in the Southeast. Furthermore, The Southern Company (NYSE:SO) provides natural gas, fiber optics and wireless communications in its other businesses. For the trailing twelve months ended September 30, 2022, The Southern Company (NYSE:SO) had net income of $3.411 billion, which more than covers the company’s annual dividend of $2.72 per share currently. Given increasing earnings, the company has raised its annual dividend for 21 consecutive years.
1. NextEra Energy, Inc. (NYSE:NEE)
Net Income (TTM) as of December 31, 2022: $4.147 billion
NextEra Energy, Inc. (NYSE:NEE) ranks #1 on our list of 12 Most Profitable Utility Stocks Now with net income of $4.147 billion in 2022. The utility owns Florida Power & Light Company which provides electricity to over 12 million people across Florida. Furthermore, NextEra Energy, Inc. (NYSE:NEE) also owns a clean energy business, “NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from seven commercial nuclear power units in Florida, New Hampshire and Wisconsin.”
ClearBridge Investments commented on NextEra Energy, Inc. (NYSE:NEE) in a Q3 2022 investor letter,
NextEra Energy, Inc. (NYSE:NEE) is an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. NextEra’s regulated business includes Florida Power & Light, which serves nine million people in Florida. NextEra’s share price rose along with the passage of the U.S. Inflation Reduction Act, which considerably expands support for renewable energy.
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