Retirement Stock Portfolio: 12 Low Risk Investments

3. The Southern Company (NYSE:SO)

Beta (5Y Monthly): 0.45

Dividend Yield as of January 25: 3.38%

On January 23, RBC Capital analyst Stephen D’Ambrisi raised his price target on The Southern Company (NYSE:SO) to $105 from $99 and kept a Sector Perform rating in place. The move came in a broader note previewing Q4 earnings for the utilities sector. The analyst pointed out that the capital spending picture for utilities has been in flux for much of the past year and a half. With investment plans shifting more quickly than usual, several companies that typically wait until Q4 to update their outlooks instead shared early or off-cycle details around capital plans. Those disclosures prompted RBC to revisit and update its models across the group.

Southern Company’s operations are concentrated in the southeastern US, though it also owns wind, solar, and natural gas assets elsewhere in the country. More than 90% of its earnings come from state-regulated electric and gas utilities, which keep the business relatively stable and easy to follow.

Through subsidiaries such as Alabama Power, Georgia Power, and Mississippi Power, the company supplies electricity and gas to customers across its service areas. Rates are set in coordination with regulators, aiming to protect consumers while allowing The Southern Company (NYSE:SO) to recover its costs and invest in maintaining and expanding its infrastructure.