In this article, we discuss 5 best utility dividend stocks to buy. If you want to read our detailed analysis of the utility sector and its outlook, go directly to read 12 Best Utility Dividend Stocks To Buy.
5. American Water Works Company, Inc. (NYSE:AWK)
Number of Hedge Fund Holders: 36
American Water Works Company, Inc. (NYSE:AWK) is an American public utility company that provides water and wastewater services across the country. In April, BofA raised its price target on the stock to $140 with an Outperform rating on the shares, following the company’s recent quarterly earnings.
On April 26, American Water Works Company, Inc. (NYSE:AWK) declared a quarterly dividend of $0.7075 per share, having raised it by 8%. This marked the company’s 15th consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 1.90%, as recorded on June 20.
At the end of Q1 2023, 36 hedge funds in Insider Monkey’s database reported having stakes in American Water Works Company, Inc. (NYSE:AWK), growing from 31 in the previous quarter. These stakes have a total value of over $1.5 billion.
ClearBridge Investments made the following comment on American Water Works Company, Inc. (NYSE:AWK) in its Q4 2022 investor letter:
“Turning to the U.S. and Canada, U.S. electric utility PG&E and U.S. water company American Water Works Company, Inc. (NYSE:AWK) also made strong contributions. AWK provides water and wastewater utility services to customers across several states within the U.S. Shares did well after AWK announced the acquisition of a municipal facility, providing additional opportunities for growth.”
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Follow American Water Works Company Inc. (NYSE:AWK)
4. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 40
Duke Energy Corporation (NYSE:DUK) is next on our list of the best dividend stocks from the utility sector. The electric power and natural gas holding company has been paying regular dividends to shareholders for the past 97 years and it also maintained a 16-year streak of dividend growth. Its quarterly dividend comes in at $1.005 per share for a dividend yield of 4.37%, as of June 20.
In June, Goldman Sachs initiated its coverage of Duke Energy Corporation (NYSE:DUK) with a Neutral rating and a $99 price target, giving a positive outlook on the utility sector.
Duke Energy Corporation (NYSE:DUK) was a popular buy among elite funds in Q1 2023, as 40 hedge funds tracked by Insider Monkey owned stakes in the company, up from 33 in the previous quarter. Their total stake value is over $571.7 million. With over 1.7 million shares, Citadel Investment Group was the company’s leading stakeholder in Q1.
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Follow Duke Energy Corp (NYSE:DUK)
3. The AES Corporation (NYSE:AES)
Number of Hedge Fund Holders: 44
The AES Corporation (NYSE:AES) is a Virginia-based utility and power generation company that owns and operates power plants. In April, Morgan Stanley maintained an Overweight rating on the shares with a $31 price target, appreciating the company’s quarterly earnings.
The AES Corporation (NYSE:AES), one of the best dividend stocks, currently pays a quarterly dividend of $0.1659 per share. The company has been raising its dividends consistently since 2013. As of June 20, the stock has a dividend yield of 3.14%.
At the end of March 31, 44 hedge funds tracked by Insider Monkey owned stakes in The AES Corporation (NYSE:AES), the same as in the previous quarter. The collective worth of these stakes is over $1.11 billion.
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Follow Aes Corp (NYSE:AES)
2. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 53
Constellation Energy Corporation (NASDAQ:CEG) provides electric power, natural gas, and energy management services. The company currently pays a quarterly dividend of $0.282 per share, having raised it by 100% in February this year. With a dividend yield of 1.21%, CEG is one of the best dividend stocks on our list.
In June, Wells Fargo raised its price target on Constellation Energy Corporation (NASDAQ:CEG) to $120 and maintained an Overweight rating on the shares. The firm expects the company to show positive results this year.
As of the close of Q1 2023, 53 hedge funds in Insider Monkey’s database reported having stakes in Constellation Energy Corporation (NASDAQ:CEG), up from 51 in the previous quarter. These stakes have a collective value of over $2.5 billion.
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Follow Constellation Energy Corp
1. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 59
NextEra Energy, Inc. (NYSE:NEE) tops our list of the best dividend stocks from the utility sector. The renewable energy company has been growing its dividends consistently for the past 27 years and currently pays a quarterly dividend of $0.4675 per share. The stock’s dividend yield on June 20 came in at 2.49%.
As of the close of Q1 2023, 59 hedge funds tracked by Insider Monkey owned investments in NextEra Energy, Inc. (NYSE:NEE), worth collectively over $1.11 billion.
Follow Nextera Energy Inc (NYSE:NEE)
Follow Nextera Energy Inc (NYSE:NEE)
You can also take a look at 10 Companies That Announced Huge Share Buybacks and 11 Best Hydrogen and Fuel Cell Stocks To Buy
