In this article, we will take a look at the 5 Utility Stocks with Highest Dividends. For deeper discussion and analysis, have a look at the 15 Utility Stocks with Highest Dividends.
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5. FirstEnergy Corp. (NYSE:FE)
Dividend Yield as of April 7: 3.65%
FirstEnergy Corp. (NYSE:FE)’s electric distribution companies form one of America’s largest investor-owned electric systems, serving more than 6 million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York.
On March 23, Morgan Stanley analyst David Arcaro slightly increased the firm’s price target on FirstEnergy Corp. (NYSE:FE) from $53 to $54, while maintaining an ‘Overweight’ rating on the shares. The updated target indicates an upside of almost 6% from the current levels.
The move comes as Morgan Stanley revised its estimates in the North American Regulated & Diversified Utilities / IPPs under its coverage. The analyst outlined the overall utility sector’s strong performance in February, when it posted gains of almost 22%. This compares to a surge of just under 14% delivered by the overall market.
The analyst firm outlined the constructive recent discussions in the industry, with companies expressing optimism regarding growth opportunities and load growth. A number of utilities have also recently signed multi-year deals with data centers, further adding to their growth outlook.
To keep up with the expanding demand, FirstEnergy Corp. (NYSE:FE) highlighted a 5-year capital investment program of $36 billion in February, targeting a consolidated ROE of 9.5% to 10% through the planning period.
4. Brookfield Renewable Corporation (NYSE:BEPC)
Dividend Yield as of April 7: 3.85%
Brookfield Renewable Corporation (NYSE:BEPC) operates one of the world’s largest publicly traded platforms for renewable power and decarbonization solutions. The company’s diversified portfolio consists of hydroelectric, wind, solar, distributed energy, and sustainable solutions across five continents.
Brookfield Renewable Corporation (NYSE:BEPC) had a setback on March 23 when Morgan Stanley double-downgraded the stock from ‘Overweight’ to ‘Underweight’, while also trimming its price target from $48 to $42. The reduced target still indicates an upside of almost 2% from the current share price.
Brookfield Renewable Corporation (NYSE:BEPC) currently trades 25% higher than Brookfield Renewable Partners LP (NYSE:BEP), and the analyst sees this spread narrowing over time.
Brookfield Renewable Corporation (NYSE:BEPC) delivered a record ~8 gigawatts of new capacity globally in FY 2025, marking a YoY increase of 20%. The company ended the year with around 84 GW of advanced-stage projects, with a target to deliver a run-rate of approximately 10 GW per year by 2027.
Parnassus Investments, an investment management company, stated the following about Brookfield Renewable Corporation (NYSE:BEPC) in its fourth quarter 2025 investment letter:
“Brookfield Renewable Corporation (NYSE:BEPC) is another beneficiary of the AI build out. The stock was supported during the quarter due to an $80 billion strategic partnership that Westinghouse, a majority-owned investment of Brookfield, signed with the U.S. Department of Commerce to build nuclear reactors for data centers.”
3. Dominion Energy, Inc. (NYSE:D)
Dividend Yield as of April 7: 4.26%
Dominion Energy, Inc. (NYSE:D) provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina.
It was reported on March 23 that Dominion Energy, Inc. (NYSE:D)’s Coastal Virginia Offshore Wind project has officially generated its first power for the grid, despite the recent delays. The 2.6 GW project is the largest of its kind in the United States, and will supply clean energy to 660,000 customers.
The project is estimated to cost around $11.5 billion, up from its previous price tag of $9.8 billion. The cost overrun is largely driven by President Trump’s tariffs, in addition to a stop-work order issued by the federal government in December last year. The current progress on CVOW is around 70%, with full completion scheduled for early 2027.
The offshore wind power facility is expected to meet the dramatically growing energy needs in Virginia, catering to the largest cluster of data centers in the world.
2. Eversource Energy (NYSE:ES)
Dividend Yield as of April 7: 4.53%
Eversource Energy (NYSE:ES) is an energy provider serving customers in Connecticut, Massachusetts, and New Hampshire.
On April 1, Wells Fargo trimmed its price target on Eversource Energy (NYSE:ES) from $78 to $74, while maintaining an ‘Overweight’ rating on the shares. The lowered target still represents an upside of over 6% from the current share price.
The move comes after the Federal Energy Regulatory Commission ordered a reduction in the return on equity for the New England transmission owners, cutting the rate from 10.57% to 9.57%. Moreover, the regulatory authority set a maximum incentive ROE of 12.09%. Eversource Energy (NYSE:ES) expects the order to reduce its after-tax earnings by approximately $70 million for 2026. The utility also scaled back its 2026 non‑GAAP earnings guidance to $4.57–$4.72 per share, while still targeting an annual EPS growth of 5-7% through 2030 from a $4.65 base. The company had earlier projected its 2026 EPS in the range of $4.80 to $4.95 per share in February.
Wells believes that the FERC ruling is a headline negative for Eversource Energy (NYSE:ES) and threatens its CAGR trajectory.
1. Clearway Energy, Inc. (NYSE:CWEN)
Dividend Yield as of April 7: 4.64%
Topping our list of Utility Stocks with the Highest Dividends is Clearway Energy, Inc. (NYSE:CWEN). With a portfolio that comprises over 13 GW of gross generating capacity in 27 states, the company is one of the largest owners of clean energy generation assets in the United States.
On March 24, UBS analyst Jon Windham bumped the firm’s price target on Clearway Energy, Inc. (NYSE:CWEN) from $39 to $44, while keeping a ‘Buy’ rating on the shares. The raised target reflects an upside of more than 9% from the current levels.
UBS highlighted Clearway Energy, Inc. (NYSE:CWEN)’s relatively strong visibility, which allows it to meet its goals of long-term cash available for distribution (CAFD). The bullish sentiment is driven by the strong demand for renewable projects, which outpaces the current supply. Moreover, the growing number of AI data centers has also added significantly to the demand for reliable, clean energy.
Clearway Energy, Inc. (NYSE:CWEN) reaffirmed its 2026 CAFD guidance of $470 million to $510 million in its last earnings call. Moreover, the company outlined continued progress toward the 2030 CAFD target of $2.90 to $3.10 per share, representing a 7% to 8% CAGR from last year.
While we acknowledge the potential of CWEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CWEN and that has 100x upside potential, check out our report about the cheapest AI stock.
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