In this article, we will discuss: 8 Most Profitable Utility Stocks to Buy Right Now.
Utility stocks are publicly traded firms that supply electricity, natural gas, and water to customers.
According to Deloitte’s 2026 Power and Utilities Industry Outlook, US electricity demand went up in 2025, mainly due to industrial electrification, AI workloads, and transportation. The peak demand is expected to grow by 26% by 2035. By 2030, industrial electrification might add 25 GW, and data center usage could reach 176 GW, a fivefold rise from 2024. Although 93% of new capacity through July 2025 will be renewable, supply expansion is slow, with 2 terawatts trapped in interconnection lines. Reliability constraints continue to grow, with 15 natural disasters in H1 2025 causing more than $1 billion in damages, three of the events surpassing $5 billion, and residential retail prices predicted to rise 4.5% from 2024. The 2025 reconciliation bill raised compliance standards and decreased incentives for green energy.
Utilities are putting firm capacity first. By 2030, 209 GW of new capacity will counter 104 GW of coal and gas retirements, or just 10% of firm baseload. Near-term efforts include ~19 GW gas additions, coal and nuclear life extensions, and peaker use. Long-term storage regulations surpass 2.75 GW. Capital requirements exceed $1.4 trillion, forcing $109 billion in 2025 M&A and increased use of securitization, partnerships, tax-credit monetization, and service-based agreements to preserve cost.
With that said, here are the 8 Most Profitable Utility Stocks to Buy Right Now.
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Our Methodology
We first sifted through the ETFs and stock screener to compile a list of the top Utility stocks. We then used Yahoo Finance to pick profitable stocks that had high TTM net income (over $1 billion) and a high TTM net income margin (over 15%). From that list, we selected 8 stocks that were the most popular among elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
8. Ameren Corporation (NYSE:AEE)
TTM Net Income as of December 30: $1.41 billion
TTM Net Income Margin as of December 30: 16.34%
Number of Hedge Fund Holders: 34
Ameren Corporation (NYSE:AEE) is among the Most Profitable Stocks.
TheFly reported on December 17, 2025, that UBS kept its buy recommendation on Ameren Corporation (NYSE:AEE) shares while reducing its price objective to $115 from $121.
Separately, Morgan Stanley maintained an Equal Weight rating on Ameren Corporation (NYSE:AEE) and lowered its price target from $108 to $103. The firm pointed out in a year-ahead note that data centers will be a major driver of utility performance with possible growth upside in 2026.
Based on a 2025 estimate midpoint of $4.95, Ameren Corporation (NYSE:AEE) revised its long-term EPS growth guidance to a 6% to 8% compound annual rate from 2025 through 2029. The revised 2025 estimate is between $4.90 and $5.10 per share, and the projected 2026 EPS is between $5.25 and $5.45.
Ameren Corporation (NYSE:AEE) is a regulated utility that operates in Illinois and Missouri. Morningstar experts claim that Missouri’s improved regulations have produced substantial investment opportunities. Illinois has been challenging, yet management has proven capable of overcoming regulatory difficulties.
The stock is up by 12.21% YTD as of December 31, 2025.
7. Dominion Energy, Inc. (NYSE:D)
TTM Net Income as of December 30: $2.61 billion
TTM Net Income Margin as of December 30: 16.79%
Number of Hedge Fund Holders: 35
Dominion Energy, Inc. (NYSE:D) is among the Most Profitable Stocks.
TheFly reported on December 22, 2025, Dominion Energy, Inc. (NYSE:D) made a statement in response to a Director’s Order from the United States Department of the Interior ordering a 90-day halt of development on the Coastal Virginia Offshore Wind Project. The company stated that the project is critical to American national security and fulfilling Virginia’s rapidly increasing energy demand, which it defined as the fastest rising in the country. According to the company, this requirement is fueled by the need to provide dependable electricity to the world’s largest warship maker, the highest concentration of data centers worldwide, and infrastructure that supports the advancement of artificial intelligence.
The firm cautioned that stopping the project could risk thousands of jobs, lead to energy inflation, and threaten the reliability of the grid for military, AI, and civilian systems. After Virginia state regulators reviewed the project in 2022, Dominion Energy, Inc. (NYSE:D) stated that it is American-owned and that customers are paying for it. The company also stated that its cyber and physical security systems are overseen by state and federal officials. The company reported that the project is situated 27 to 44 miles offshore, involves a close military partnership, and has been in development for more than ten years. There have been no documented effects on national security during the five years that two pilot turbines have been in operation.
Dominion Energy, Inc. (NYSE:D) is an integrated energy firm.
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