Royal Dutch Shell plc (ADR) (RDS.A), Altria Group Inc (MO), and The Southern Company (SO): Bond Risks Point to Stock Preference

Being a big utility, however, is only part of the benefit here. The company has generally good relationships with its regulators and operates in growing markets. Thus, organic growth is likely to lead to slow, but steady, top and bottom line advances. However, the company is also building two big power plants, one a nuclear facility and the other a coal gasification plant. Not only will these plants help keep fuel costs down, but they should help The Southern Company (NYSE:SO) win rate increases.

Nothing is risk free

Bonds today are a lot more risky than many fully understand. Buying into great companies offering bond-like yields is a good alternative. Shell, Altria Group Inc (NYSE:MO), and The Southern Company (NYSE:SO) all offer such yields and have solid businesses. If the market heads south, these stocks may fall, but the underlying businesses should allow for continued dividend hikes.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Southern Company.

The article Bond Risks Point to Stock Preference originally appeared on Fool.com.

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