2 stocks with full analysis pages and real-time alerts
The utilities sector includes electric utilities (NextEra Energy, Duke Energy, Southern Company), natural gas distributors (Atmos Energy, Southwest Gas), water utilities (American Water Works, Essential Utilities), and multi-utilities providing several services. Utilities are regulated monopolies that earn guaranteed returns on their invested capital, set by state public utility commissions. This regulatory framework provides revenue predictability rare in the equity market, but also caps upside potential. Utilities are considered bond proxies because their stable dividends compete with bond yields, causing prices to move inversely with interest rates. The energy transition has added a growth dimension, as utilities invest billions in renewable energy, grid modernization, and electric vehicle charging infrastructure. Rate base growth from capital investment drives earnings per share growth of 5-8% annually, supporting dividend increases.
Utilities are evaluated on rate base growth (the invested capital on which regulators allow returns), authorized return on equity (typically 9-11%), earnings per share growth, dividend yield and payout ratio, and capital expenditure plans. Regulatory environment matters: constructive regulators approve rate increases readily, while hostile regulators delay or deny them. Weather normalization adjusts earnings for unusually hot or cold periods. Debt-to-capitalization ratio measures financial risk, with 50-60% typical for utilities. For renewable-focused utilities, renewable energy capacity as a percentage of total generation indicates transition progress.
Utilities are the primary income sector, where dividend timing and valuation matter most. Dividend ex-date alerts ensure income investors capture every quarterly distribution. P/E ratio alerts identify buying opportunities, as utilities typically trade in a narrow P/E range (16-22x) and deviations signal mispricing. Price below alerts catch interest rate-driven selloffs that create entry points for patient investors. Even small percentage moves are meaningful in this low-volatility sector, so alerts at 3-5% capture significant events.
Dividend ex-date and payment alerts are essential for utility investors, as consistent income is the primary investment thesis. P/E ratio below alerts at 16-18x identify when utilities are undervalued relative to their regulated earnings power. Price below alerts at 52-week lows catch rate-driven panic selling that historically reverses. New 52-week low alerts across multiple utility names simultaneously signal a sector-wide buying opportunity during rate hiking cycles.
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Utilities compete with bonds for income-seeking investors. When bond yields rise from 3% to 5%, a utility stock yielding 3.5% becomes less attractive relative to risk-free bonds. Additionally, higher rates increase utility borrowing costs for capital-intensive infrastructure projects. Historically, utilities decline 10-15% during rate-hiking cycles but recover when rates stabilize. Set price below and P/E below alerts to buy during these predictable selloffs.
NextEra Energy is the largest wind and solar generator globally. AES Corporation and Clearway Energy focus on renewable development. Traditional utilities investing heavily in grid modernization (Duke Energy, Southern Company) benefit from rate base growth as regulators approve clean energy capital spending. Set earnings alerts to track renewable energy capacity additions and regulatory approval timelines for major capital projects.
Utilities have among the most reliable dividends in the market. People use electricity, gas, and water regardless of economic conditions, providing stable revenue. Many utilities have increased dividends for 15-50+ consecutive years. During the 2008-2009 recession, only one major utility cut its dividend (Xcel Energy temporarily). Set dividend ex-date alerts and monitor payout ratios quarterly to ensure sustainability stays below 75%.
Set up real-time alerts for utilities stocks. Price targets, technical indicators, earnings, and more.