10 Best Utility Dividend Stocks To Buy

2. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 92

Vistra Corp. (NYSE:VST), a leading utility company based in Irving, Texas, has significantly outperformed the market, with its stock price rising by 200% year-to-date. This impressive performance is largely attributed to the company’s acquisition of Energy Harbor, which expanded its nuclear generation and energy storage capabilities. As AI technologies advance and demand for clean energy rises, Vistra’s strong position in the nuclear power sector is becoming more advantageous.

Vistra Corp. (NYSE:VST) reported ongoing operations EBITDA of $1.4 billion for the second quarter, a strong performance despite lower wholesale energy prices. Moreover, the company reaffirmed its 2024 guidance range for ongoing operations adjusted EBITDA, set between $4.6 billion and $5.1 billion. Based on performance so far and the outlook for the rest of the year, the company is confident it will achieve results toward the upper end of this range.

Vistra Corp. (NYSE:VST) continues to follow the capital return plan set up in the fourth quarter of 2021. Since then, the company has returned about $5 billion to investors, including $4.25 billion in share repurchases through August 5 of this year. It expects to carry out at least $2.25 billion in share repurchases during 2024 and 2025.

Here’s what Fidelity Investments said about Vistra Corp. (NYSE:VST) in its Q2 2024 investor letter:

“An overweight stake in utility company Vistra Corp. (NYSE:VST) (+24%) was the top individual relative contributor. In Q1, the Texas-based independent power producer completed its acquisition of Ohio-based nuclear fleet operator Energy Harbor. The new Vistra, with its expanded geographic footprint, is in strong position to gain from the buildout of AI-capable data centers, which require enormous amounts of power to run. It is expected that local grids in the U.S. will need to invest heavily over the coming years to improve their power infrastructure and meet growing demand. In the nearer term, firms may choose to contract with independent power producers, like Vistra, rather than rely on the local provider.”