Duke Energy Corp.

George Soros has made some changes to his firm’s portfolio in the first quarter. Soros Fund Management LLC bought some new securities.

Utility stocks have been rallying for the last two years amid broader market volatility. The rally in these stocks steepened last year.

Utility stocks rose more than 22% in 2019. Can they continue their climb in 2020? And how do Wall Street analysts look at them right now?

Among the top utility stocks, NextEra Energy offers a yield of 2.1%, the lowest among its peers. Regulated utility Southern Company (SO) yields 4%.

Consolidated Edison has a dividend yield of 3.4%, higher than utilities’ average of 3%. It declared a quarterly dividend of $0.74 per share in October.

Top regulated utility Duke Energy (DUK) declared a quarterly dividend of $0.945 per share in October. The dividend is set to be paid on December 16.

Southern Company has continued to trade sideways. The utility stock hit a new 52-week high last month but has been rangebound since September.

Utility stocks’ dividend growth plays a vital role in driving investors’ total returns over the long term, making it important as a dividend yield.

American Electric Power Company (AEP) declared a quarterly dividend of $0.70 per share in October. These dividends will be paid on December 12.

The Utilities Select Sector SPDR ETF (XLU), which represents the top utility stocks, has been trading in a very narrow range for the last two weeks.

Generally, investors prefer utility stocks due to their stable dividend-paying capabilities. Currently, they offer an average dividend yield of 3%.

Southern Company (SO) stock has continued to trade close to all-time highs. The stock has gained more than 42% this year, notably outperforming peers.

Renewables giant NextEra Energy (NEE) declared a quarterly dividend of $1.25 per share last month. It’s expected to pay a dividend of $5 per share in 2019.

Duke Energy (DUK) stock fell more than 10% from its 52-week high last month after lower-than-expected third-quarter revenues and share dilution.

Many top utilities rely on coal and other fossil fuels for power generation. They are still far behind their zero-carbon-emission targets.

One of the biggest regulated utilities, Southern Company (SO), is the top-rallying stock in the sector this year. It’s up more than 40%.

Southern Company (SO), the top regulated utility, declared a quarterly dividend of $0.62 per share last month. The ex-date for the dividends is Friday.

Along with the Dow Jones and S&P 500, normally slow-moving utilities are trading at record highs right now. And they could continue to shine.

After a solid rally, Southern Company (SO) stock seems to have calmed down a bit recently. Should you buy on the rally ahead of earnings?

Top utility stocks trended lower and lost 1.3% last week. Broader markets were positive but cautious on trade talk optimism, gaining 0.7% last week.

Dividend yields of Southern Company (SO) and Duke Energy (DUK) currently stand at multi-year lows because utility stocks had a solid run this year.

Utility stocks soared as Treasury yields fell on September 24. The Utilities Select Sector SPDR ETF gained 1.2% while the S&P 500 tumbled 0.8% yesterday.

Last week, the top four utility stocks by market cap—NextEra Energy, Duke Energy, Southern Company, and Dominion Energy—touched new 52-week highs on Friday.

There’s been a lot of talk about defensive stocks amid broader markets’ volatility. Southern Company stock has rallied almost 40% year-to-date.

Utilities stayed strong as broader markets closed sharply down yesterday. The Utilities Select Sector SPDR ETF soared as investors turned to defensives.

Southern Company stock has had a robust run in 2019. Including dividends, it has returned more than 35% YTD, almost double the broad market index S&P 500.

While the S&P 500 has fallen more than 5% from its peak last month, utility stocks have continued to make all-time highs.

The slow-moving utilities sector has outperformed the S&P 500 Index in the last five years. Utilities should grow 4%–6% per year in the foreseeable future.

Geopolitical tensions and falling Treasury yields hint at an upcoming recession and the utilities sector has outperformed broader markets.

Southern Company hit a new all-time high of $58.56 on August 9. So far, Southern Company stock has risen approximately 33% this year.

Investors turned to defensive utilities intensified yesterday after President Trump announced 10% tariffs on another $300.0 billion worth of Chinese goods.

The top utility stocks might continue to rise if the Fed delivers its interest rate cut this week. Utilities are usually seen as bond substitutes.

For the second quarter, Dominion Energy’s (D) earnings are scheduled to be released on July 31. Dominion Energy will likely report an EPS of $0.76.

Rate cut expectations continued to drive broader markets last week. The utilities sector fell 0.4%, while SPY fell 1.2% for the week ending July 19.

NextEra Energy (NEE) will likely report its second-quarter earnings on July 24. The utility is expected to report an EPS of $2.28 for the quarter ended June 30.

Southern Company (SO) declared a quarterly dividend of $0.62 per share on Monday. The dividend is in line with the previous quarterly dividend.

The benchmark ten-year Treasury yields continued to rise last week due to better-than-expected economic data.

On Sunday, Duke Energy declared a quarterly dividend of $0.945 per share—an increase of ~2% compared to its last quarterly dividend.

Southern Company (SO) stock has been unstoppable in 2019. So far, the stock has risen almost 30%.

Joe Biden has proposed a climate change framework that aims to zero down on carbon emissions and create millions of new jobs by 2050.

The defensives and utilities sector fell more than 2% last week while broader markets fell just 0.3%. Here’s why.

Among the top utility stocks in 2019, Southern Company (SO) leads the pack. The stock has rallied almost 30% in 2019. Southern Company has shown an unusual rally in the last few months.

Utility stocks continued to rise last week. The Utilities Select Sector SPDR ETF (XLU) hit a new 52-week high and closed at $61.0 last week. Utility stocks have shown a slow but steady rally in 2019.

The utilities sector continues to offer a premium dividend yield along with stable upward price movement. On average, utility stocks are currently yielding 3.2%, while broader markets offer a yield close to ~2%.

Analysts expect a downside of ~1% from NextEra Energy (NEE) stock based on the mean target price of $205.0 and its current price of ~$207.0. Analysts seem more positive on NextEra Energy stock compared to its peers.

Many top utility stocks are trading at a significant premium to their historical averages. NextEra Energy (NEE) stock is trading at 24x its forward earnings. NextEra Energy’s five-year historical average valuation is ~18x–19x.

Analysts expect flattish movement from NextEra Energy (NEE) stock based on the mean target price of $200.0 and its current price of $199.0.

Utility stocks (XLU) are currently trading at a dividend yield of 3.1%, higher than broader markets.

Almost all the top utility stocks have showed a decent rally in the last few months.

So far this year, utility stocks have gained ~11%, while the S&P 500 has gained more than 15%.

Duke Energy (DUK), the second-biggest utility by market cap, reported its first-quarter earnings today.

Duke Energy (DUK) stock offers a potential upside of 2.6% for the next 12 months based on analysts’ mean target price of $92.2.

Duke Energy (DUK), the second-biggest utility by market cap, is scheduled to report its first-quarter earnings on May 9.

Utilities were close to their all-time high and gained 0.4% last week, while broader markets also gained marginally.

NextEra Energy, the biggest utility by market cap, is trading at a forward PE multiple of 22x based on analysts’ estimated EPS for the next 12 months.

Currently, utilities (XLU) have an average dividend yield of ~3.1%. Dominion Energy (D) offers a dividend yield of 4.8%.

Many top utility stocks’ price targets were changed last week.

Utility stocks continued to underperform broader markets last week.

NextEra Energy is scheduled to release its first-quarter earnings on April 23. The company is expected to report total revenues of $4.31 billion.

Southern Company (SO) declared a quarterly dividend of $0.62 per share, which implies an annualized dividend of $2.48 per share.

Last week, utility stocks continued to underperform broader markets for the third consecutive week. XLU rose 0.2% for the week ending April 12.

Currently, Sempra Energy (SRE) stock offers a dividend yield of 3%, which is in line with the industry average.

The Utilities Select Sector SPDR ETF (XLU) is trading at $58.1, which is almost 2% and 7% above its 50-day and 200-day moving average levels.

Quarterly earnings could be an important driver of top utility stocks’ (XLU) performances in the short to medium term.

Investors generally seek shelter in safe-haven utility stocks amid market uncertainty due to their higher dividend-paying capabilities.

In the first quarter, safe-haven utilities exhibited one of their best performances, gaining ~11%.

Southern Company (SO) stock has a downside potential of almost 5% given analysts’ target price of $49.56.

Duke Energy’s 50-day level around $88.4 could act as a support for the stock in the short term. The company’s RSI is at 64.

Duke Energy (DUK) and Southern Company (SO) have aimed for earnings growth of 4%–6% per year for the next few years.

Recently, US utilities’ payout ratio averaged ~65%–75%. Duke Energy’s payout ratio was 97%, while Southern Company’s ratio was 110% in 2018.

In the past five years, Southern Company and Duke Energy’s dividends rose ~3% each compounded annually.

Southern Company is trading at a yield of 4.7%, while Duke Energy offers a yield of 4.1%—notably higher than utilities at large yielding ~3%.

NextEra Energy’s (NEE) current dividend yield of 2.6% is lower than broader utilities’ (XLU) average yield of 3.0%.

On March 20, UBS raised NextEra Energy’s target price from $217.0 to $225.0. Barclays raised the target price to $207.0 from $187.0.

NextEra Energy (NEE) had a net debt of $37.0 billion at the end of the fourth quarter. Dominion Energy (D) had a net debt of $35.0 billion.

For the past 12 months, NextEra Energy stock rose 18%, while Dominion Energy rose 8%. Currently, NextEra Energy is trading at ~$190.0.

AES’s (AES) dividend yield is 3.0%, its lowest in the last few years.

American Electric Power Company (AEP) stock has a median target price of $82.44 compared to its current market price of $82.98.

On March 12, Southern Company (SO) stock exhibited an implied volatility level of 13%, close to its 15-day average.

Regulated utility giant Southern Company (SO) has been on a solid uptrend recently and is up ~18% so far this year.

Utilities have not only proved to be a shelter amid market uncertainty but also significantly beaten broader markets in the long term.

AES Corporation (AES) stock has continued last year’s uptrend in 2019 as well.

Utilities continued their upward march last week and outperformed broader markets.

On March 5, FirstEnergy (FE) stock had an implied volatility of 15%, which is close to its 15-day average volatility.

Dominion Energy (D) leads the top utilities in terms of dividend yields. It offers a yield of 5.0% at the moment.

The Utilities Select Sector SPDR ETF (XLU), which represents the top US utility stocks, marginally rose while the S&P 500 rose ~0.5% last week.

In this part of our series, let’s see how Southern Company (SO) is valued as its trades close to its yearly peak.

Institutions held almost 80% in NextEra Energy during the fourth quarter. The Vanguard Group was the top institutional investor in NextEra Energy.

NextEra Energy (NEE), the biggest component of the Utilities ETF (XLU) and the lowest-yielding utility, significantly outperformed utilities at large.

Most of the top institutional investors increased their existing holdings in Duke Energy (DUK)—the largest regulated utility in the country.

On February 15, the Utilities Select Sector SPDR ETF’s (XLU) implied volatility was close to 12%—lower than its 15-day average volatility of ~13%.

Utilities had marginal gains last week and underperformed broader markets. The Utilities Select Sector SPDR ETF (XLU) rose 0.05%.

Duke Energy (DUK), the second-largest utility by market cap, released its fourth-quarter and full-year 2018 earnings today.

Southern Company (SO) is trading at a dividend yield of 4.9%, which is notably higher than broader utilities’ average yield close to 3.3%.

NextEra Energy stock offers a potential upside of almost 3% based on the median target price of $188.5 and its current price of $183.0.

NextEra Energy (NEE), the biggest utility, is trading at a forward PE ratio of 21x based on analysts’ earnings estimates for the next 12 months.

The recent strength in broader utilities has put many stocks in the “overbought” zone. XLU is trading at an RSI of 78.

In the week ending February 8, the utilities sector outperformed broader markets for the third consecutive week.

Duke Energy (DUK) is expected to pay a dividend of $0.93 per share in the fourth quarter.