10 Stocks That Are Close To Becoming Dividend Aristocrats

3. The Southern Company (NYSE:SO)

Consecutive Years of Dividend Growth: 23 Years

The Southern Company (NYSE:SO) is an American electric power distribution company that is primarily engaged in the generation, transmission, and distribution of electricity. The company is a highly reliable utility stock, making it an appealing choice for passive income investors. It maintains a well-diversified energy portfolio, combining fossil fuels, wind, solar, and nuclear power. While its primary market is in the southeastern United States, its power generation extends nationwide. For instance, the majority of its wind energy facilities are located in Texas and Oklahoma, while its solar operations are largely focused in the Southwestern US. The stock has surged by more than 24% in 2024 so far.

In the third quarter of 2024, The Southern Company (NYSE:SO) reported revenue of $7.27 billion, which saw a 4.2% growth from the same period last year. The company’s cash flow generation is also very strong with its trailing twelve-month operating cash flow of $9.43 billion and levered free cash flow of $498.7 million. It currently offers a quarterly dividend of $0.72 per share and has a dividend yield of 3.27%, as of December 2. The company has raised its payouts for 23 consecutive years.

The number of hedge funds tracked by Insider Monkey owning stakes in The Southern Company (NYSE:SO) grew to 37 in Q3 2024, from 32 in the previous quarter. These stakes have a consolidated value of over $1.8 billion. Rajiv Jain’s GQG Partners owned the largest stake in the company, worth $1.5 billion.