Investors looking for big yields and dividend growth in utility stocks are advised to act now before rates start declining. Three “growth utilities” are highlighted as great opportunities to take advantage of this moment. The first pick, NextEra Energy, has seen a 22% increase in stock price since the 10-year yield peaked last fall. Despite its impressive numbers, the stock price remains below its all-time highs, making it a good buy at the moment.
Sempra, the second pick, operates in California and Texas, two growing markets. With a current yield of 3.5%, the company’s stock price is on the rise, presenting a buying opportunity. With a low forward P/E ratio and a strong balance sheet, Sempra is a solid investment choice for those looking for growth and stability in the utility sector.
Alliant Energy, the third pick, has a stable customer base in Iowa and Wisconsin and is well-positioned to benefit from the electrification of industry and the return of manufacturing to America. The company’s focus on renewables, including wind, solar, and battery storage, align with the decreasing costs of renewable generation. With a solid track record of growth in EPS and dividends, Alliant Energy is a reliable investment option in the utility space.
Overall, investors are encouraged to take advantage of the current environment before interest rates decline and utility stocks see a pop. By considering the growth potential, stability, and dividend growth of companies like NextEra Energy, Sempra, and Alliant Energy, investors can position themselves for strong returns in the utility sector. It is essential to act now and make a move before these opportunities pass by.
