The Southern Company (SO), Duke Energy Corp (DUK): Which Utility Is Worth Buying?

For example, PPL Corporation (NYSE:PPL), is a $17 billion provider of electricity in the United States and the U.K.

PPL had a solid 2012, reporting $2.60 per share in full-year profits. That means that at recent prices, PPL Corporation (NYSE:PPL) trades for an attractive 11 times earnings.

Moreover, PPL’s dividend yield compares favorably to many competitors in the utility sector, where strong share price gains over the past year have widely depressed yields. Whereas Southern and Duke Energy Corp (NYSE:DUK) yield less than 4.5%, PPL Corporation (NYSE:PPL) yields 5% at its recent levels.

The Foolish takeaway

If you’re an investor who prefers to not have to keep your eyes glued to every piece of market-rattling news, these stocks can provide a necessary dose of stability to your portfolio. Electricity is something people will use regardless of the prevailing economic environment, and as a result, these stocks will keep profits and dividends flowing to investors for many years to come.

Within the utility sector, PPL Corporation (NYSE:PPL) looks to be one of the best of the bunch. The company is trading measurably below where most of its peers trade, and as a result, I view PPL Corporation (NYSE:PPL) as one of the few utilities that still has room to run.

Moreover, PPL Corporation (NYSE:PPL)’s dividend yield is almost 50 basis points better than both The Southern Company (NYSE:SO) and Duke Energy, and as a result, is the best choice for investors who need current income. In light of all this, investors looking into the utility sector would be wise to give PPL preference.

The article Which Utility Is Worth Buying? originally appeared on Fool.com and is written by Robert Ciura.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Southern Company. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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