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How Southern Company’s Total Returns Compare to Peers

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Southern Company’s total returns

$47 billion Southern Company (SO) has underperformed peers in terms of total returns in the last one year. It returned 5% while Duke Energy (DUK) returned 8% in the last one year.

Total return is a more precise way of analyzing utilities’ performances, as it considers stock appreciation and dividends as well.

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In the same period, the Utilities Select Sector SPDR (XLU) returned 13% while broader markets (SPY) (SPX-INDEX) returned 26%.

The expected rate hikes in 2017 are likely the main reason behind utilities’ underperformance this year. US utilities (XLU) stocks were climbing this time last year.

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