The Southern Company (SO) – Among the 12 Best Utility Stocks to Buy Now According to Hedge Funds

The Southern Company (NYSE:SO) is included among the 12 Best Utility Stocks to Buy Now According to Hedge Funds.

The Southern Company (SO) - Among the 12 Best Utility Stocks to Buy Now According to Hedge Funds

The Southern Company (NYSE:SO) is one of the largest producers of electricity in the United States and the largest wholesale provider in the Southeast.

On June 24, Morgan Stanley analyst David Arcaro upped the firm’s price target on The Southern Company (NYSE:SO) from $87 to $89, but reaffirmed an ‘Underweight’ rating on the shares. The raised target still reflects a downside of more than 8% from the current share price.

Morgan Stanley adjusted its price objectives for North American Regulated & Diversified Utilities / IPPs as part of its monthly update. The firm noted that the overall utilities sector posted a decline of 5.5% in May, significantly underperforming the gains of around 5.1% delivered by the broader S&P during the month.

The Southern Company (NYSE:SO) has an exceptional track record of having paid a quarterly dividend to its shareholders for 79 consecutive years. The utility has also increased its payouts for 25 straight years. With a robust annual dividend yield of 3.13%, SO is ranked among the 12 Best S&P 500 Stocks to Buy for Dividends.

While we acknowledge the risk and potential of SO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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