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SO, DUK, and D: A Look at Top-Yielding Utilities

Vineet Kulkarni - Author
By

Aug. 18 2020, Updated 6:19 a.m. ET

Dividend yield

Broader utilities are currently trading at a dividend yield of 4.2%—a significant premium to ten-year Treasuries yielding ~2.80%. Broader markets yield ~1.9%.

Interestingly, some of the top utilities yield way higher than their peers’ average. Southern Company (SO) yields 5.2%, while peer Duke Energy (DUK) is trading at a dividend yield of 4.6%.

Dominion Energy (D), the third-largest utility by market capitalization, is currently trading at a dividend yield of 5%. Recently, Dominion Energy’s yield peaked due to the steep fall in its stock.

NextEra Energy (NEE), the biggest constituent of the Utilities Select Sector SPDR ETF (XLU), offers a yield of 2.7%. NextEra Energy is the biggest utility by market capitalization. NextEra Energy yields way lower than its peers, which might concern investors.

To compare the top utilities’ dividend profiles, read Analyzing the Biggest S&P 500 Utilities’ Dividend Profiles.

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