5 Best Utility Dividend Stocks To Buy

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 the performance of dividend stocks, go directly to read 13 Best Utility Dividend Stocks To Buy. 

5. The AES Corporation (NYSE:AES)

Number of Hedge Fund Holders: 37

The AES Corporation (NYSE:AES) is a global energy company that operates in the generation and distribution of electricity. In December 2023, the company declared a 4% hike in its quarterly dividend to $0.1725 per share. This marked the company’s 11th consecutive year of dividend growth, which makes AES one of the best dividend stocks on our list from the utility sector. The stock has a dividend yield of 4.03%, as of January 26.

Insider Monkey’s database of Q3 2023 showed that 37 hedge funds owned stakes in The AES Corporation (NYSE:AES), up from 36 in the preceding quarter. The collective value of these stakes is over $751 million. With roughly 20 million shares, Orbis Investment Management was the company’s leading stakeholder in Q3.

4. Duke Energy Corporation (NYSE:DUK)

Number of Hedge Fund Holders: 39

Duke Energy Corporation (NYSE:DUK) is an American utility company that is primarily involved in the generation, transmission, distribution, and sale of electricity. The company has a 97-year run of paying regular dividends to shareholders and it has been growing its dividends for the past 12 years. It offers a quarterly dividend of $1.025 per share and has a dividend yield of 4.28%, as of January 26.

The number of hedge funds tracked by Insider Monkey owning stakes in Duke Energy Corporation (NYSE:DUK) stood at 39 in Q3 2023, which remained unchanged from the previous quarter. The total value of these stakes is more than $428.5 million.

3. American Electric Power Company, Inc. (NASDAQ:AEP)

Number of Hedge Fund Holders: 39

American Electric Power Company, Inc. (NASDAQ:AEP) ranks third on our list of the best dividend stocks from the utility sector. The American utility company is involved in the generation of electricity from various sources, including coal, natural gas, nuclear, and renewable energy. The company offers a quarterly dividend of $0.88 per share, having raised it by 6% in October 2023. This was the company’s 14th consecutive annual dividend hike. The stock has a dividend yield of 4.51%, as of January 26.

American Electric Power Company, Inc. (NASDAQ:AEP) was a part of 39 hedge fund portfolios at the end of Q3 2023, up from 33 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of more than $545.4 million.

2. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 45

Constellation Energy Corporation (NASDAQ:CEG) is an energy company that is engaged in the generation, sale, and distribution of electricity and natural gas. The company started its dividend policy in 2022 and has raised its payouts once since then. Currently, it offers a quarterly dividend of $0.282 per share and has a dividend yield of 0.94%, as of January 26.

Insider Monkey’s database of Q3 2023 indicated that 45 hedge funds owned stakes in Constellation Energy Corporation (NASDAQ:CEG), down slightly from 46 in the previous quarter. These stakes are collectively valued at over $1.5 billion. With over 6 million shares, Orbis Investment Management was the company’s leading stakeholder in Q3.

1. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 58

NextEra Energy, Inc. (NYSE:NEE) tops our list of the best utility dividend stocks. The American energy company holds a 27-year track record of consistent dividend growth and offers a quarterly dividend of $$0.4675 per share. The stock’s dividend yield on January 26 came in at 3.23%.

According to Insider Monkey’s database of Q3 2023, 58 hedge funds held stakes in NextEra Energy, Inc. (NYSE:NEE), compared with 59 a quarter earlier. The total value of these stakes is more than $1.4 billion.

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