Utilities are considered “widow & orphan” stocks for a reason. And that’s because they’re viewed as safe. After all, we need to power and heat our homes no matter what the economy is doing. This produces a lot of cash flows. As such, utilities hand those cash flows back to investors, but that doesn’t mean that utility stocks can provide growth. And that’s just the case with our new Best Sector Dividend Stocks List pick.
Our pick was already one of the largest electricity providers in the fast-growing Sun Belt. However, a few years ago, our pick made a major move into natural gas distribution, adding both more customers and an avenue for growth. Now our pick is a giant among the multi-utilities.
Growth is coming from natural gas transmission and midstream assets as well as a new focus on renewable energy. With plenty of subsidies and rising demand for solar and wind energy, our pick has quickly been adding capacity to its generation mix. And thanks to the rate hikes that come along with this capacity, earnings have swooned.
With its huge base of core customers in the south providing steady cash flows and new growth opportunities in midstream and solar, our pick is one of the best utility stocks you can buy.
You can check out the Best Sector Lists to explore all the stocks.
