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Yahoo
11 hours ago
- Business
- Yahoo
3 Utility Stocks That Could Help Set You Up for Life
Written by Daniel Da Costa at The Motley Fool Canada If you're looking to build long-term wealth with as little stress as possible, utility stocks are unquestionably some of the best investments you can make. They may not be flashy or fast-moving, but that's exactly what makes them so attractive for long-term investors. Utility companies provide essential services such as electricity, natural gas, or water and that consistent demand gives them some of the most stable and predictable revenue streams in the market. Because of that stability, utility stocks are ideal for conservative investors or anyone focused on generating reliable, long-term returns. They tend to hold up well during economic downturns, they often pay steady and consistently growing dividends, and many are backed by regulated frameworks that reduce volatility and help mitigate risk even further. Therefore, because these stocks have predictable revenue and are consistently investing in future growth, they aren't just defensive stocks. In fact, the best utility stocks still offer solid growth potential over the long haul. These stocks increase earnings every year, which consequently allows them to increase their dividend payments, allowing the share price to follow suit. And when you combine that long-term upside with steady income and recession resistance, utility stocks become one of the best core stocks for your portfolio. So, if you're looking to boost your income or shore up your portfolio, here are three of the best utility stocks to buy now. If you're looking for a solid utility stock to buy now, there's no question that Emera (TSX:EMA) and Fortis (TSX:FTS) are two of the best in Canada. Both stocks provide both electricity and gas services to their millions of customers, and each company has diversified operations all over North America. This diversification is crucial because it takes an already low-risk industry and helps to reduce risk even more. However, while both Fortis and Emera have many similarities, the main difference between the two stocks today is their dividends. Currently, Fortis is expecting to increase its dividend between 4% and 6% annually through 2029, while Emera expects to increase its dividend by 1% to 2% annually over the next few years as it works to shore up its balance sheet and reduce its payout ratio. However, while Fortis offers more dividend growth potential over the coming years, it has a lower yield today. Right now, Fortis is offering investors a yield of roughly 3.8%, compared to Emera's current yield of 4.7%. Fortis also has a much longer track record of consistent dividend increases. While Emera's 18-year streak is impressive, Fortis has increased its dividend every year for half a century. So, although they are both two of the top utility stocks you can buy on the TSX, the slight edge still goes to Fortis unless you're looking for a higher-yield stock with the same level of reliability. In addition to Fortis and Emera, another top utility stock to consider adding to your portfolio today is AltaGas (TSX:ALA). AltaGas is one of the more unique utility stocks in Canada, offering a mix of traditional utility operations and high-potential energy infrastructure. It owns regulated natural gas utilities in the U.S., but it also has a large midstream energy segment focused on natural gas processing, exports, and storage. This diversified model makes AltaGas a reliable investment while also giving it the potential to grow faster than a regular utility stock. Its utility business provides steady cash flow and earnings visibility, while the midstream business offers upside tied to global demand for North American energy, particularly the growing Asian market, where AltaGas exports energy through its Ridley Island terminal. Furthermore, in recent years, AltaGas sold off a ton of non-core assets and strengthened its balance sheet significantly, which is why it's now one of the best utility stocks to buy and hold for the long haul. Finally, not only does it offer a yield of 3.3%, but AltaGas keeps that dividend sustainable by targeting a payout ratio of roughly 60%. So, if you're looking for a high-quality utility stock to buy now and hold for years, AltaGas is certainly one you'll want to consider. The post 3 Utility Stocks That Could Help Set You Up for Life appeared first on The Motley Fool Canada. Before you buy stock in Altagas, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Altagas wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends Emera and Fortis. The Motley Fool has a disclosure policy. 2025
Yahoo
19-06-2025
- Business
- Yahoo
This Overlooked Utility Stock Delivers Impressive Dividend Growth
Evergy, Inc. (NASDAQ:EVRG) is one of Best Dividend Stocks to Buy for Dependable Growth. Evergy, Inc. (NASDAQ:EVRG) is often overlooked among utility stocks, despite having a strong track record of dividend growth. The company has increased its dividend for 20 consecutive years, averaging nearly 6% annual growth over the past five years. In addition, the stock has a dividend yield of 4%, as of June 17. It is one of the best dividend stocks. A power line stretching across a sunbathed landscape with rural homes in the foreground. Analysts expect this upward trend to continue, supported by a solid business outlook. In February, Evergy, Inc. (NASDAQ:EVRG) revealed that its pipeline of large electricity customers, such as data centers, had grown to 11.2 GW, exceeding its current peak demand. To support this growth, the company raised its 2025–2029 capital spending plan by 8% to $17.5 billion. Earnings-wise, Evergy, Inc. (NASDAQ:EVRG) reaffirmed its long-term adjusted EPS growth target of 4% to 6% through 2029, based on a 2025 midpoint of $4.02. Starting in 2026, the company expects to hit the higher end of that range. It also maintains a solid cash position, with trailing twelve-month operating cash flow exceeding $2 billion. The company currently offers a quarterly dividend of $0.6675 per share. Evergy, Inc. (NASDAQ:EVRG) supplies electricity to 1.7 million customers across Kansas and Missouri through its subsidiaries: Evergy Kansas Central, Evergy Metro, and Evergy Missouri West. While we acknowledge the potential of EVRG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
Yahoo
18-06-2025
- Business
- Yahoo
This Overlooked Utility Stock Delivers Impressive Dividend Growth
Evergy, Inc. (NASDAQ:EVRG) is one of Best Dividend Stocks to Buy for Dependable Growth. Evergy, Inc. (NASDAQ:EVRG) is often overlooked among utility stocks, despite having a strong track record of dividend growth. The company has increased its dividend for 20 consecutive years, averaging nearly 6% annual growth over the past five years. In addition, the stock has a dividend yield of 4%, as of June 17. It is one of the best dividend stocks. A power line stretching across a sunbathed landscape with rural homes in the foreground. Analysts expect this upward trend to continue, supported by a solid business outlook. In February, Evergy, Inc. (NASDAQ:EVRG) revealed that its pipeline of large electricity customers, such as data centers, had grown to 11.2 GW, exceeding its current peak demand. To support this growth, the company raised its 2025–2029 capital spending plan by 8% to $17.5 billion. Earnings-wise, Evergy, Inc. (NASDAQ:EVRG) reaffirmed its long-term adjusted EPS growth target of 4% to 6% through 2029, based on a 2025 midpoint of $4.02. Starting in 2026, the company expects to hit the higher end of that range. It also maintains a solid cash position, with trailing twelve-month operating cash flow exceeding $2 billion. The company currently offers a quarterly dividend of $0.6675 per share. Evergy, Inc. (NASDAQ:EVRG) supplies electricity to 1.7 million customers across Kansas and Missouri through its subsidiaries: Evergy Kansas Central, Evergy Metro, and Evergy Missouri West. While we acknowledge the potential of EVRG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Utility stocks outperform S&P 500 with 'no signs of recession' in power demand
Utility stocks have outperformed the S&P 500 (^GSPC) year to date as power demand surges, even as tariff uncertainty raises questions about a recession. The S&P 500 Utilities Select ETF (XLU) is up more than 6% compared to a 4% drop for the broad-based index, an 8% drop for Tech (XLK), and an 11% decline in Consumer Discretionary (XLC) stocks. Even though utility stocks dipped along with the rest of the market following President Trump's tariff policy announcement on April 2, their drop was not as severe as other sectors. "By and large, utilities appear to be minimally impacted by tariffs," CFRA analyst Daniel Rich told Yahoo Finance. "The vast majority of utility companies' capital investment budgets rely on US labor, materials, and energy." The sector's outperformance comes on the heels of a 23% gain in 2024 as data center growth from an artificial intelligence boom and efforts to onshore manufacturing spurred increased demand for electricity. That demand is going strong despite fears of a recession stemming from the global trade war. 'No signs of recession in power demand,' noted Goldman Sachs analysts on Tuesday night. 'Year to date, US power demand has increased by 5.5% year over year vs. the average annual growth rate of 0.6% in the past decade.' The analysts said all power demand sectors have contributed to this growth, including residential. The Energy Information Administration expects electricity demand to grow fastest in the industrial sector this year as new semiconductor and battery manufacturing operations come online. Data center energy consumption is also expected to increase. On Tuesday, energy holding giant Duke Energy (DUK) announced it signed agreements for nearly 1 gigawatt of data center projects involving two customers in April. "We are projecting load growth at levels I've never seen in my 30-year career, which will drive more than a decade of record infrastructure build," Duke CEO Harry Sideris told analysts during the company's earnings call, referring to increasing power demand in the US. Duke Energy stock is up 13% year to date. Its peers the Southern Company (SO) and Exelon (EXC) are also up 12% and 23%, respectively. On Wednesday, Google (GOOG, GOOGL) announced a collaboration with advanced nuclear project developer Elementl Power, yet another sign of Big Tech's insatiable appetite for electricity This follows a tie-up in September between Microsoft (MSFT) and energy giant Constellation Energy (CEG), as well as Amazon's (AMZN) purchase of a data center campus from energy provider Talen Energy (TLN) last March. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.