Updated on October 16th, 2026 by Nikolaos Sismanis
Utility stocks can make excellent investments for long-term dividend growth investors.
Durable, regulatory-based competitive advantages allow these companies to consistently raise their rates over time.
In turn, this allows them to raise their dividend payments year in and year out.
Even better, many utility stocks have above-average dividend yields, providing a compelling combination of income now and growth later for long-term investors.
Because of these favorable industry characteristics, we’ve compiled a list of utility stocks.
The list is derived from the major utility sector exchange-traded funds JXI and XLU.
You can download your utility stocks spreadsheet (along with important financial ratios such as dividend yields and payout ratios) by clicking on the link below:
Keep reading this article to learn more about the benefits of investing in utility stocks.
Table Of Contents
The following table of contents provides for easy navigation:
- Why Utility Dividend Stocks Make Attractive Investments
- The Top 10 Utility Stocks Now
- Top Utility Stock #10: RGC Resources, Inc. (RGCO)
- Top Utility Stock #9: Eversource Energy (ES)
- Top Utility Stock #8: Brookfield Infrastructure Partners L.P. (BIP)
- Top Utility Stock #7: CMS Energy Corp. (CMS)
- Top Utility Stock #6: NextEra Energy Inc. (NEE)
- Top Utility Stock #5: NRG Energy, Inc. (NRG)
- Top Utility Stock #4: The AES Corporation (AES)
- Top Utility Stock #3: Portland General Electric (POR)
- Top Utility Stock #2: H2O America (HTO)
- Top Utility Stock #1: Edison International (EIX)
- Final Thoughts
Why Utility Dividend Stocks Make Attractive Investments
The word “utility” describes a wide variety of business models but is usually used as a reference to electric utilities — companies that engage in the generation, transmission, and distribution of electricity.
Other types of utilities include propane utilities and water utilities.
So why do these businesses make for attractive investments?
Utilities usually conduct business in highly regulated markets, complying with rules set by federal, state, and municipal governments.
While this sounds highly unattractive on the surface, what it means in practice is that utilities are basically legal monopolies.
The strict regulatory environment that utility businesses operate in creates a strong and durable competitive advantage for existing industry participants.
For this reason, electric utilities are among the most popular stocks for long-term dividend growth investors — especially because they tend to offer above-average dividend yields.
Indeed, the regulatory-based competitive advantages available to utility stocks give them the consistency to raise their dividends regularly.
Simply put, utility stocks are some of the most dependable dividend stocks around.
The long streak of consecutive dividend increases is possible only because of their unique industry-specific competitive advantages.
Clearly, the utility sector is very stable.
People are going to need electricity and water in ever-increasing amounts for the foreseeable future.
One characteristic that does not describe utility stocks is high growth.
One of the regulatory constraints imposed upon utility companies is the pace at which they can increase the fees paid by their customers.
These rate increases are usually in the low-single-digits, which provides a cap on the revenue growth experienced by these companies.
Utility stocks typically don’t offer strong total returns, but there are exceptions.
The Top 10 Utility Stocks Now
Taking all of the above into consideration, the following section discusses the 10 utility securities in the Sure Analysis Research Database with the highest expected annual returns over the next five years.
The stocks are ranked from the lowest expected total return at #10 to the highest expected total return at #1. Expected returns reflect the combination of the current dividend yield, expected business growth, and any projected change in valuation.
Related: Watch the video below to learn how to calculate expected total return for any stock.
Only securities classified in the Utilities sector with a Dividend Risk Score of ‘C’ or better were eligible for inclusion.
Top Utility Stock #10: RGC Resources, Inc. (RGCO)
- Dividend Risk Score: C
- Dividend Yield: 3.8%
- Expected Total Return: 13.1%
RGC Resources, Inc. distributes natural gas through Roanoke Gas to roughly 64,000 Virginia customers and owns smaller interests in Mountain Valley Pipeline projects.
Its market capitalization is about $240 million.
Fiscal third-quarter 2026 revenue fell 0.9% to $17.1 million, while net income rose from $538,000 to $559,000.
Operating margin improved by $757,000, supported by higher base rates, infrastructure investment returns, and customer growth, although costs absorbed much of the gain.
Through the first nine months, net income increased 5.2% to $14.2 million.
The company’s September investor presentation said a rate-case settlement would add $3.85 million in annual revenue, with a final order expected in early fiscal 2027.
It also expects the MVP Southgate project to finish construction in early 2027, while the separate MVP Boost project remains in permitting.
Management warned that its liquefied-natural-gas tank will be unavailable this winter and is arranging alternative gas supplies.
These developments make regulatory execution, project timing, and winter supply planning important to the return case.
RGC has paid regular cash dividends for more than 82 years and increased its dividend for more than two decades.
Its annualized dividend is $0.87 per share, and our projected payout ratio is about 63%, leaving some room for setbacks but less than at larger utilities.
Top Utility Stock #9: Eversource Energy (ES)
- Dividend Risk Score: C
- Dividend Yield: 4.7%
- Expected Total Return: 13.3%
Eversource Energy is a regulated utility serving electric and natural-gas customers across New England, with earnings supported by investment in transmission and distribution infrastructure.
Second-quarter 2026 GAAP earnings were $53.7 million, or $0.14 per share, compared with $352.7 million, or $0.96 per share, a year earlier.
The decline largely reflected charges related to the completed Aquarion Water sale and an increase in an offshore-wind contingent liability.
Excluding those items, recurring earnings were $329.1 million, or $0.87 per share.
Eversource reaffirmed recurring 2026 earnings guidance of $4.57 to $4.72 per share and targets 5% to 7% annual recurring earnings growth through 2030.
The Aquarion sale generated about $1.7 billion of net equity proceeds, supporting debt reduction and a more focused regulated electric-and-gas business.
In September, ISO New England selected the joint TIDE transmission project as its preferred long-term solution, creating another potential infrastructure opportunity.
The project still requires engineering, permitting, and regulatory reviews, with construction anticipated in 2029 subject to approvals.
Eversource has increased its dividend for 28 consecutive years and pays $3.15 annually, consuming about 68% of our earnings estimate.
Regulated assets support the income case, while lower transmission returns, financing costs, offshore-wind obligations, and capital-plan execution remain important risks.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on Eversource Energy (ES).
Top Utility Stock #8: Brookfield Infrastructure Partners L.P. (BIP)
- Dividend Risk Score: C
- Dividend Yield: 5.0%
- Expected Total Return: 13.4%
Brookfield Infrastructure Partners L.P. owns essential infrastructure across utilities, transport, midstream, and data operations, with regulated or contracted revenues and inflation-linked pricing supporting cash generation.
It remains a Bermuda-based limited partnership, although an approved conversion would change that legal structure.
Second-quarter 2026 funds from operations rose 10% to $702 million, while FFO per unit increased 9.9% to $0.89.
Data and midstream FFO grew 36% and 17%, respectively, supported by higher utilization, inflation-linked rates, and newly commissioned projects.
First-half FFO per unit increased 9.8% to $1.79, and the capital backlog stood at about $8.1 billion at quarter-end.
On October 14, unitholders approved the corporate simplification by more than 99% of votes cast.
Conversion into a Canadian corporation is expected before year-end, subject to the final court order, and does not depend on approval by BIPC shareholders.
BIPC’s separate vote is scheduled for October 29, while the court hearing is expected around November 3.
Brookfield targets 5% to 9% annual distribution growth and a 60% to 70% FFO payout ratio.
Its $1.82 annualized distribution represents about 51% of our 2026 FFO estimate, although capital spending, financing costs, asset-sale execution, and the pending legal restructuring remain important considerations.
Top Utility Stock #7: CMS Energy Corp. (CMS)
- Dividend Risk Score: C
- Dividend Yield: 3.4%
- Expected Total Return: 13.5%
CMS Energy Corp. is a Michigan-focused energy company whose principal subsidiary, Consumers Energy, provides electric and natural-gas service across much of the state.
Its regulated utility supplies the core of earnings and planned investment.
Second-quarter 2026 operating revenue slipped 0.5% to $1.83 billion.
Adjusted earnings-per-share declined from $0.71 to $0.37, reflecting milder weather, restoration costs, and the timing of operating and maintenance expenses.
Management reaffirmed adjusted EPS guidance of $3.83 to $3.90 for 2026 and introduced a $4.08 to $4.17 range for 2027, maintaining its 6% to 8% long-term growth target.
CMS completed a strategic review of NorthStar and is exiting non-utility renewable development while retaining selected Michigan assets.
The decision concentrates capital on regulated opportunities, including the company’s $24 billion 2026-to-2030 investment plan and demand from data centers and other large customers.
Management expects this spending to support about 10.5% annual rate-base growth through 2030.
CMS raised its annualized dividend to $2.28 for 2026, marking its 20th consecutive annual increase.
The dividend consumes about 59% of our 2026 earnings estimate, while management targets a payout ratio near 55% over time to retain more capital for investment.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on CMS Energy Corp. (CMS).
Top Utility Stock #6: NextEra Energy Inc. (NEE)
- Dividend Risk Score: B
- Dividend Yield: 3.2%
- Expected Total Return: 14.5%
NextEra Energy Inc. combines Florida Power & Light, the largest U.S. electric utility by retail megawatt-hour sales, with NextEra Energy Resources, a major developer and operator of renewable energy and storage.
This mix provides regulated earnings alongside a sizable development business, with electricity demand creating opportunities across both operations.
Second-quarter 2026 revenue increased 12% to $7.5 billion, while adjusted earnings rose 11% to $2.4 billion.
Adjusted earnings-per-share advanced 9.5% to $1.15, and NextEra added 3.6 gigawatts of renewables and storage projects to its backlog.
In September, management reiterated 2026 adjusted EPS guidance of $3.92 to $4.02, targeting the high end, and an 8%+ annual growth outlook through 2032.
Shareholders approved the proposed all-stock combination with Dominion Energy in September, but regulatory approvals remain outstanding.
The transaction is expected to close in the second half of 2027 and would create a business with more than 80% regulated exposure.
Management expects immediate earnings accretion at closing and 9%+ annual adjusted EPS growth through 2032 for the combined company.
NextEra has increased its dividend for 32 consecutive years and pays $0.6232 quarterly.
It expects dividend growth of about 10% through 2026 and 6% annually from year-end 2026 through 2028, while financing needs and merger execution remain risks.
Top Utility Stock #5: NRG Energy, Inc. (NRG)
- Dividend Risk Score: C
- Dividend Yield: 1.9%
- Expected Total Return: 15.4%
NRG Energy, Inc. is a major U.S. retail electricity provider with power-generation assets and a growing virtual-power-plant business.
Unlike a traditional regulated utility, NRG is exposed to wholesale power markets, fuel prices, and customer demand, making its earnings less predictable.
In January 2026, NRG completed its roughly $12 billion acquisition of generation assets and CPower from LS Power, significantly expanding its reach.
Second-quarter 2026 revenue rose 11% to $7.5 billion, while adjusted EBITDA increased from $909 million to $1.217 billion.
Adjusted earnings-per-share fell from $1.73 to $1.49 as higher interest and depreciation expenses more than offset the benefit from the newly acquired assets.
Management reaffirmed 2026 adjusted EPS guidance of $7.90 to $9.90 and adjusted EBITDA guidance of $5.325 billion to $5.825 billion.
Its new 415-megawatt T.H. Wharton facility began commercial operations, and NRG is advancing a proposed 1.2-gigawatt Texas power project with a large data-center customer.
Electricity-demand growth and the LS Power assets support our return estimate, but integration, debt, and volatile hedging results remain important risks.
NRG raised its quarterly dividend 8% to $0.475 in January 2026, extending its dividend-growth streak to seven years.
Our projected 2026 payout ratio is about 22%, leaving room to invest, although debt and execution risks warrant attention.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on NRG Energy, Inc. (NRG).
Top Utility Stock #4: The AES Corporation (AES)
- Dividend Risk Score: C
- Dividend Yield: 4.7%
- Expected Total Return: 15.4%
The AES Corporation is a global power company with about 35 gigawatts of generation across 14 countries.
Its portfolio includes natural gas, renewables, coal, energy storage, and regulated U.S. utilities.
AES also has a sizable renewable-development backlog, although the pending acquisition now dominates the near-term investment case.
For the second quarter of 2026, revenue increased to $3.42 billion from $2.86 billion.
Diluted earnings-per-share were $0.60, compared with a loss of $0.15 in the prior-year quarter.
AES continues to develop renewable and storage projects while recycling capital through asset sales, and its U.S. utility rate-base investments provide a more predictable source of growth.
Global Infrastructure Partners and EQT Infrastructure VI Fund have agreed to acquire AES for $15 per share in cash.
Shareholders approved the transaction in June 2026, and closing is expected in late 2026 or early 2027, subject to remaining approvals.
Therefore, the 15.4% expected total return shown above is our stand-alone five-year estimate and would not be realized if the transaction closes on its current terms.
Practical upside would instead be limited to the cash offer and any dividends received before closing, with timing and completion risks affecting the outcome.
AES pays $0.17595 quarterly and has increased its dividend for 12 consecutive years.
Top Utility Stock #3: Portland General Electric (POR)
- Dividend Risk Score: C
- Dividend Yield: 5.0%
- Expected Total Return: 15.7%
Portland General Electric supplies electricity to more than 950,000 customers across 51 Oregon cities and towns.
Its owned and contracted generation portfolio exceeds 3.5 gigawatts and includes natural gas, coal, wind, solar, and hydroelectric resources.
Industrial customers account for a meaningful portion of electricity deliveries, making regional data-center and manufacturing demand especially relevant.
Portland General reported second-quarter 2026 GAAP net income of $68 million, or $0.59 per diluted share, compared with $0.56 in the prior-year quarter.
Adjusted EPS was $0.64 versus $0.66 one year earlier.
Industrial demand grew 11.2%, led by high-tech and data-center customers, while residential and commercial loads were relatively flat.
Management reaffirmed adjusted EPS guidance of $3.33 to $3.53 and expects about 2% annual energy-delivery growth.
The pending $1.9 billion acquisition of PacifiCorp’s Washington utility operations could add roughly 140,000 customers and create a second regulated growth platform near Portland General’s existing territory.
The transaction, which includes minority investment from Manulife affiliates, is expected to close in 2027.
Portland General raised its quarterly dividend by 5% to $0.5513 in April 2026, extending its dividend growth streak to 20 years.
Management’s long-term target of 5% to 7% annual dividend growth broadly matches its earnings-growth objective.
Top Utility Stock #2: H2O America (HTO)
- Dividend Risk Score: A
- Dividend Yield: 3.1%
- Expected Total Return: 17.7%
H2O America, formerly SJW Group, owns regulated water and wastewater utilities in California, Texas, Connecticut, and Maine.
Its growing markets in Silicon Valley and Texas support infrastructure investment, while regulated rate increases provide a mechanism to earn returns on that spending.
Second-quarter 2026 revenue increased 6.2% to $210.5 million, and earnings-per-share edged up to $0.72 from $0.71.
Rate increases added $14.5 million to revenue, although regulatory adjustments and higher operating expenses limited profit growth.
Management reaffirmed 2026 EPS guidance of $3.08 to $3.18 and its 6% to 8% long-term EPS growth objective.
On October 1, H2O America’s Texas subsidiaries completed the $540 million Quadvest acquisition, more than doubling the company’s Texas water and wastewater connections and expanding into Houston.
Management expects Texas to represent 26% of its customer base by 2029, compared with 8% before closing.
The company plans more than $2.7 billion of capital investment from 2026 through 2030, although acquisition financing and the timing of new rates can pressure near-term earnings.
H2O America raised its quarterly dividend 4.8% to $0.44 in January, marking its 58th consecutive annual increase.
That record and regulated investment support the income case, with integration, funding, and regulatory execution central to future growth.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on H2O America (HTO).
Top Utility Stock #1: Edison International (EIX)
- Dividend Risk Score: C
- Dividend Yield: 6.3%
- Expected Total Return: 18.2%
Edison International owns Southern California Edison, a regulated electric utility serving roughly 15 million people across central, coastal, and southern California.
Its wires-focused business invests in transmission, distribution, reliability, and wildfire prevention.
Second-quarter 2026 revenue declined 4.1% to $4.35 billion, primarily because lower pass-through costs reduced reported sales.
Core earnings-per-share climbed 58.8% to $1.54, aided by the final 2025 General Rate Case decision and lower operating expenses.
Edison plans $38 billion to $41 billion in capital spending through 2030 without issuing new common equity.
Wildfire liabilities remain the central risk.
On October 8, SCE reported more than 5,000 claims under its voluntary Eaton Fire recovery program, over $1 billion in offers, and more than $550 million paid.
On October 13, short seller Muddy Waters alleged willful misconduct, arguing that Edison could face substantially larger liabilities.
Edison disputed wrongdoing and said it remains confident its system maintenance met the standard of a reasonable utility.
The allegations are contested, and the legal outcome remains unresolved.
Edison pays $0.8775 quarterly, has raised its dividend for 23 consecutive years, and has a projected payout ratio near 57%.
Those figures support coverage, but the 18.2% modeled return must be weighed against substantial litigation, wildfire-fund, and financing uncertainty.
Final Thoughts
Utilities can still offer attractive total-return potential when durable rate-base growth is paired with a reasonable valuation.
Our ranking highlights several distinct drivers.
For example, H2O America and RGC Resources combine long dividend histories with regulated infrastructure growth, while NextEra Energy and CMS Energy are investing heavily to meet rising power demand.
Edison International, Portland General Electric, and Eversource offer higher yields alongside company-specific wildfire, regulatory, financing, and transaction risks.
NRG adds more wholesale power-market exposure, while Brookfield Infrastructure provides a diversified global infrastructure model through a partnership structure, with conversion into a Canadian corporation still pending.
Our ranking should not replace a review of the underlying risks.
In particular, AES’s projected 15.4% return is our stand-alone five-year estimate; the pending $15-per-share cash acquisition would limit the outcome if completed.
You should also weigh payout coverage, financing needs, regulatory relationships, and valuation—not simply expected return.
The strongest candidates are those whose dividend and capital-spending plans remain supportable even if interest rates stay elevated or project timelines slip.
Other Sure Dividend Resources
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- BDCs: Detailed BDC list