15 Best Defensive Stocks Amid Market Volatility

10. The Southern Company (NYSE:SO)

Beta: 0.46

Number of Hedge Fund Holders: 53

The Southern Company (NYSE:SO) is a utility provider serving around nine million customers across the southeastern United States. It leverages a diverse energy portfolio, including natural gas, nuclear, and renewable sources.

On February 21, following the release of the company’s Q4 earnings, a Mizuho analyst raised the price target for The Southern Company (NYSE:SO) from $85 to $90 while maintaining a Neutral rating. The analyst now expects a 7% growth in the rate base, up from the earlier forecast of 6%, driven by the company’s revised capital expenditure plan. However, the rating remained unchanged due to concerns about limited upside potential stemming from valuation.

Despite this, The Southern Company (NYSE:SO) benefits from strong regulatory support and a proven record of consistent dividend payments, making it an attractive option for income-focused investors. The company is dedicated to transitioning toward low-carbon energy while ensuring reliable and affordable services. Additionally, it is responding to increasing demand from data centers, recently securing contracts in two U.S. states for over 1,000 megawatts of energy.

Looking ahead, the company projects an annual average sales growth of about 8% between 2025 and 2029. Its commercial segment, which includes data centers and contributes nearly one-third of total retail electricity sales, is anticipated to grow at an average rate of 18% over the same timeframe, supporting a positive long-term growth outlook.