Wall Street’s top analyst loves high-yielding dividend utility stocks

24/7 Wall St. Perspectives

• The utilities sector grew by 20% in 2024.
• High-yielding dividend stocks will be in favor as interest rates fall.
• Sit back and let dividends do the hard work for a simple and steady path to serious wealth creation over time. Grab a free copy of “7 Things I Look for in a Dividend Stock,” plus get the two best dividend stocks to own today. Access 2 legendary high-yielding dividend stocks that Wall Street loves.

Dividend shares they are a favorite among investors for good reason. They provide a steady stream of passive income and offer a promising path to total return. Total return, a comprehensive measure of investment performance, includes interest, capital gains, dividends and distributions realized over time.

In simpler terms, is the sum of earnings and stock appreciation. Dividend stocks can boost investment success by providing regular income and capital appreciation.

Utility stocks they shone in 2024, as mentioned, by 20%. With interest rates set to decline for the remainder of 2024 and likely another 100 basis point cut in 2025, growth and income investors will continue to load into the sector. Julien Dumoulin-Smith, outstanding utility analyst at Jefferies, is very bullish on this sector and believes that the differences between the “haves” and the “have-nots” will be very evident. Additionally, he noted that sector winners will likely share these positives:

• Involvement in data center growth
• Residential and commercial pricing
• Favorable regulatory environments

Seven stocks they started with a Buy rating and we checked the list for the companies that pay the highest dividends. Five stocks look like great ideas for investors looking for reliable growth and dividends.

Why do we cover utility stocks?

S&P 500 the utilities sector has gained well over 20% since its mid-February low and outperformed the large-cap benchmark by 3%. Shares will be affected if the major stock indices fall significantly. However, history shows that heavy utility stocks are likely to hold up much better than high-flying tech stocks, especially those chasing the artificial intelligence craze.

With a product always in demand and winter just around the corner, high-yield utilities might be the best idea right now for anxious investors.

Evergy

An investor-owned energy company serving more than 1.6 million customers in Kansas and Missouri.

Less known than some utility stocks, Evergy Inc. (NASDAQ: EVRG ) offers a rich dividend yield of 4.13%. Together with its subsidiaries, Evergy generates, transmits, distributes and sells electricity in the United States.

The company generate electricity by:

• Coal,
• Storage gas
• Uranium
• Sources of natural gas and oil
• Solar, wind and other renewable sources

The company serves residences, commercial firms, industries, municipalities and other electric utilities.

OGE Energy

A holding company that provides physical delivery and related services for electricity and natural gas.

By 4.11% dividend and close to breakout, this is a solid idea for investors now. OGE Energy Corp. (NYSE: OGE) and its subsidiaries operate as an energy service provider in the United States. The company generates, transmits, distributes and sells electricity.

In addition, provides retail electric service to approximately 896,000 customers, covering a service area of ​​approximately 30,000 square miles in Oklahoma and western Arkansas.

Also owns and operates coal, natural gas, wind and solar generation assets.

The capital city of Pinnacle West

An American utility holding company that owns Arizona Public Service.

Trading only at a 52-week high, this company pays shareholders a dividend of 3.90%. Through its subsidiary, Pinnacle West Capital Corp. (NYSE: PNW) provides retail and wholesale electrical services primarily in Arizona.

The company generates, transmits and distributes electricity using:

• Coal
• Nuclear
• Gas
• Oil
• Solar generation installations

His transmission facilities include overhead and underground lines, and distribution facilities consist of overhead and underground primary cables. The company also owns and maintains transmission and distribution stations and energy storage facilities.

Exelon

The largest electric parent company in the United States by revenue and the largest regulated electric utility company in the United States.

This top utility the stock makes sense now for conservative accounts and pays a reliable 3.77% dividend. Exelon Corp. (NYSE: EXC) is a utility services holding company engaged in the business of energy distribution and transmission in the United States and Canada.

The company purchases and regulates retail sales of electricity and natural gas and the transmission and distribution of electricity and natural gas to retail customers.

Also provides support services including:

• Legal
• Human resources
• Information technology
• Supply management
• Financial
• Engineering
• Customer Operations
• Distribution and transportation planning
• Asset management
• System operations
• Electricity procurement services

The company serves:

• Distribution utilities
• Municipalities
• cooperation
• Financial institutions
• Commercial, industrial, government and residential customers

PPL

An energy company based in Allentown, Pennsylvania, in the Lehigh Valley region of eastern Pennsylvania.

This utility stock is a top pick from Jefferies. It’s perfect now for conservative accounts and pays a reliable dividend of 3.17%. PPL Corp. (NYSE: PPL) is an energy company that provides electricity and natural gas to approximately 3.6 million customers in the United States.

works through three segments:

• Regulated in Kentucky
• Regulated in Pennsylvania
• Regulated in Rhode Island

The company provides electricity to customers in Pennsylvania, Kentucky, Virginia and Rhode Island. It delivers natural gas to customers in Kentucky and Rhode Island and generates electricity from power plants in Kentucky.

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