In this piece, we will take a look at the five most profitable utility stocks to buy now. If you want to skip our analysis of the utility industry and the recent developments, then you can take a look at the 13 Most Profitable Utility Stocks Now.
5. Sempra (NYSE:SRE)
Latest TTM Net Income: $2.4 billion
Sempra (NYSE:SRE) is a diversified utility that provides gas and electricity to millions of people in the U.S. Its California gas business division took an important step in the renewables race in December when powered a portion of California’s grid with a hydrogen power project.
34 out of the 910 hedge funds polled by Insider Monkey were the firm’s investors in Q3 2023. Sempra (NYSE:SRE)’s biggest hedge fund stakeholder is Ken Griffin’s Citadel Investment Group as it owns 3 million shares that are worth $205 million.
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4. Public Service Enterprise Group Incorporated (NYSE:PEG)
Latest TTM Net Income: $2.8 billion
Public Service Enterprise Group Incorporated (NYSE:PEG) is a Newark, New Jersey based utility with tens of thousands of miles of transmission networks in its portfolio. The firm has beaten analyst EPS estimates in all four of its latest quarters and the shares are rated Buy on average.
As Q3 2023 ended, 20 out of the 910 hedge funds profiled by Insider Monkey were Public Service Enterprise Group Incorporated (NYSE:PEG)’s investors. Israel Englander’s Millennium Management was the biggest shareholder courtesy of its $34.4 million stake.
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Follow Public Service Enterprise Group Inc (NYSE:PEG)
3. The Southern Company (NYSE:SO)
Latest TTM Net Income: $3 billion
The Southern Company (NYSE:SO) distributes gas and electricity to consumers in several American states. It’s one of the more remarkable stocks on our list when it comes to dividends since The Southern Company (NYSE:SO) has not reduced its dividend for a whopping 75 years.
During September 2023, 35 out of the 910 hedge funds part of Insider Monkey’s database had held a stake in the company. The Southern Company (NYSE:SO)’s largest investor out of these is Phill Gross and Robert Atchinson’s Adage Capital Management as it owns $96 million worth of shares.
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2. NextEra Energy, Inc. (NYSE:NEE)
Latest TTM Net Income: $7.6 billion
NextEra Energy, Inc. (NYSE:NEE) is a Florida based utility providing power to more than ten million people. Its shares are rated Buy on average and analysts have set an average share price target of $72.74.
For their third quarter of 2023 investments, 58 out of the 910 hedge funds profiled by Insider Monkey were NextEra Energy, Inc. (NYSE:NEE)’s shareholders. Ken Fisher’s Fisher Asset Management was the biggest shareholder due to its $560 million stake.
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1. National Grid plc (NYSE:NGG)
Latest TTM Net Income: $9.77 billion
National Grid plc (NYSE:NGG) is a British electricity and gas distributor headquartered in London, the United Kingdom. The firm generated quite a bit of controversy in December 2023 when it was revealed that it was removing Chinese made components from its grid due to cyber threats.
Ten out of the 910 hedge funds surveyed by Insider Monkey during Q3 2023 had invested in the firm. National Grid plc (NYSE:NGG)’s largest hedge fund investor is Ken Fisher’s Renaissance Technologies since it owns 3.5 million shares that are worth $213 million.
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Follow National Grid Plc (NYSE:NGG)
Disclosure: None. You can also take a look at 15 Undervalued S&P 500 Stocks Billionaires Are Loading Up On and 20 Most Expensive Gemstones in the World.
