12 Best Utility Stocks to Buy According to Hedge Funds

6. The AES Corporation (NYSE:AES)

Number of Hedge Fund Holders: 47

The AES Corporation (NYSE:AES) based in Virginia, is a global power company that generates, transmits, and distributes electricity across 15 countries in North America, Asia, Europe, South America, Central America, and the Caribbean. The company generates electricity using natural gas, coal, solar, and wind. The AES Corporation (NYSE:AES) portfolio consists of over 31 gigawatts of generation.

The AES Corporation (NYSE:AES) has been at the forefront of the renewable energy transition, with a significant focus on developing and commissioning large-scale renewable projects. This growth is driven by a strong pipeline of projects including a 1.5 gigawatt wind project in Texas. The company has strong relationships with corporate customers, particularly in the technology and mining sectors, driven by its ability to offer customized solutions and deliver projects on time and on budget. The AES Corporation’s (NYSE:AES) strategic partnerships, such as the one with CDPQ, a global investment group, have been pivotal in securing funding and expertise for these projects. The company recently extended its partnership with CDPQ, to support the growth plans of AES Ohio.

AES Ohio also plans to invest more than $1.5 billion from 2024 through 2027 to enhance system reliability and modernize its grid. This investment includes extensive upgrades to transmission infrastructure and the deployment of smart grid technology. Furthermore, the company recently reached a settlement agreement for Phase 2 of its Smart Grid program, which, if approved by the Public Utilities Commission of Ohio (PUCO), will enable investments of over $240 million over a four-year period focusing on modernizing the grid infrastructure through advanced technologies such as automation and improved communication capabilities.