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The Southern Company: What To Expect Next?

Aug. 01, 2021 11:42 AM ETThe Southern Company (SO)18 Comments


  • My last articles performed analyses focusing on the specifics and ROCE of the Southern Company.
  • This article reviews the return drivers in the past decade, and then provides an outlook for the next one.
  • The results unfortunately suggest that it is unlikely that the past decade's performance can be repeated for the next one.

Closeup Eletricity line and electricity post
nuttapong/iStock via Getty Images

Thesis and recap

My last articles performed analyses focusing on the specifics and ROCE of the Southern Company (NYSE:SO). This article reviews the return drivers in the past decade, and then provides an outlook

This article was written by

Envision Research profile picture

Envision Research, aka Lucas Ma, has over 15+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.

He leads the investing group Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (18)

Cuip99 profile picture
Sounds good to me. I am long in SO and think it is a well managed company. Soon when the two nuke plants come on line things will really get to humming along.
kevinl4 profile picture
Buy this or any power company stock and forget about it. It will make you a ca- ching.
kevinl4 profile picture
I have never done anything but make money with So. This is the stock you buy for a new grandchild or someone who simply has a small chunk to invest. Brokerage house HATE this stock because once you own it you just keep gaining.
@kevinl4 I’ve owned since Carter president. 8k a year now. HS, Collage , Med School for daughter. Just spent dividends. Now our turn! 🍷
kevinl4 profile picture
@tokey You have it licked.
SO is just too boondoggley. They may have had a good decade despite the Kemper and Vogtle money pits, but eventually the pipers must be paid.


Cuip99 profile picture
Good article with good explanations. I would have pointed out the coming Vogtle plants #3 and #4 will generate high rates of electrical power at low costs. This will allow reduction of the carbon foot print to make the progressives happy. And it will make all the EV owners happy for increases sources to keep their cars charged. Those are emotional in nature but seemingly in high demand from the liberals. I simply like the increased capacity to generate electricity at reasonable cost.
Have owned for 10yrs. Even when my broker said sell sell sell. They will be fine in the future.
kevinl4 profile picture
@freightrain Brokers hate this stock because they know its no maintenance.
@freightrain I’ve owned 2600 shares since Jimmy Carter was president. Just collect dividends we spend them. Help pay for our daughters MD and I suspect grand kids too. I’m just an old poor boy God bless America !
Author concludes SO is "a respectable investment opportunity". Well it certainly is for this retired income investor.

Long SO
Own SO for 40 years. Once the Vogtle units are eventually operating and making money, SO will be fine. With all the solar and wind power around the country especially in the far west, having baseline generation to spare is a very good thing to have.
brasscop profile picture
@Paul L from California Exactly, a constant contributor to the essential base load of the grid.
50locations profile picture
@Paul L from California SO was the first stock I acquired 40 some years ago also. 100 shares and went straight to DRIP. Never adding any new shares. Today SO + 300 shares in my IRA.
My prime concerns with Southern lies in the cost overruns and missed in service dates of the uncertified Vogtle units, the timeline for when or even if FERC will certify the units, and how much cost shareholders will have to bear in the form of dividend cuts or elimination. I cannot image that the regulatory public services will allow Southern to fully pass the total construction costs onto ratepayers. These are reasons that I insist on a minimum 5% dividend yield buy stock price.
toh192 profile picture
Your seriously going to miss out when electricity prices triple.
thanks for the article. For me, SO is more of a bond substitute. ..... since not much options for other fixed income. will hope you are right and only surprises may be favorable ones!!
Investing for Freedom profile picture
I guess any expected return for as long as a decade has to compare against a benchmark, say sp500. Some suggest sp500 will only return 3-5% a year in the future decade. If true, $SO would be a wonderful investment fro here. Nobody knows the future of course, but at least we can collect the respectable 4.13% dividend and find out.
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