My Top 10 Utilities For 2025

Jan. 03, 2025 7:00 AM ETAEP, AWK, BKH, ES, EVRG, SJW, WEC, WTRG, XEL, XLU, AWR67 Comments
(27min)

Summary

  • Long-term rates have risen, creating potential buying opportunities for utilities like AEP, AWK, AWR, BKH, ES, EVRG, SJW, WEC, WTRG, and XEL.
  • These utilities have strong fundamentals, attractive valuations, and investment-grade balance sheets, offering potential total returns of 20% to 56% by 2025.
  • Despite rate sensitivity, these utilities are well-positioned for long-term growth with secure dividends and robust balance sheets.
  • The average five-year annualized total return potential for these utilities is 12%, making them smart buys for 2025 and beyond.
  • Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More »

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NoDerog

This article was coproduced with Kody Kester.

In a divergence from what is usually expected, long-term rates have risen in recent months as short-term rates have declined.

This could pressure utilities in the months to come, but that could

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This article was written by

Brad Thomas profile picture
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Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions. He has been featured in Barron's, Bloomberg, Fox Business, and many other media outlets. He's the author of four books, including the latest, REITs For Dummies.

Brad, along with HOYA Capital, lead the investing group iREIT®+HOYA Capital. The service covers REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives. The team of analysts has a combined 100+ years of experience and includes a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U.S. President.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of BKH, SJW, DUK 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.

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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Related Stocks

SymbolLast Price% Chg
AEP--
American Electric Power Company, Inc.
AWK--
American Water Works Company, Inc.
BKH--
Black Hills Corporation
ES--
Eversource Energy
EVRG--
Evergy, Inc.

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