Southern Company Is A Defensive Equity Stalwart

Oct. 14, 2021 9:52 PM ETThe Southern Company (SO)5 Comments
Geoff Considine profile picture
Geoff Considine
5.73K Followers

Summary

  • SO has a long history as a low-beta income stock.
  • SO has out-performed the utility indexes in recent years.
  • The Wall Street consensus outlook projects around 9% total return.
  • The market-implied outlook for SO is bullish, with low volatility.

Aerial view of electrical wires large scale power energy tower

Nejc Gostincar/E+ via Getty Images

Southern Company (NYSE:SO) is one of my favorite ultra-defensive stocks, with a beta of 0.47. SO’s trailing 1-year total return of 11.6% has soundly exceeded the return of the utilities industry

This article was written by

Geoff Considine profile picture
5.73K Followers
Geoff has worked in quantitative finance for more than twenty years. Before entering finance, Geoff was a research scientist for NASA. Geoff holds a PhD in Atmospheric Science from the University of Colorado - Boulder and a BS in Physics from Georgia Tech. Neither Geoff Considine nor Quantext (Geoff's company) are investment advisors. Nothing in any commentary here on Seeking Alpha or elsewhere shall be regarded as advice.

Disclosure: I/we have a beneficial long position in the shares of SO either through stock ownership, options, or other derivatives. 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.

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