SO, DUK, & ED among top 5 utility stocks to explore in May

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 SO, DUK, & ED among top 5 utility stocks to explore in May
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Highlights:

  • Southern Company (NYSE: SO) revenue increased by 12.5% YoY in Q1, FY22.
  • Dominion Energy, Inc. (NYSE: D) reported a revenue of US$4.27 billion in the first quarter of fiscal 2022.
  • Consolidated Edison, Inc. (NYSE: ED) reported total operating revenue of US$4.06 billion in Q1, FY22.

The utility sector provides necessary services like electricity, natural gas, water, etc., to customers, including residential and commercial establishments and government departments. Investors consider the utility sector a stable investment because demand for these services remains steady even during recessions.

The costs of the utility services are either regulated by the government or guaranteed contractually, so the companies generate steady income. Additionally, utility companies also typically pay higher dividends to investors. Here we discuss some of the top S&P 500 utility stocks that may be worth exploring.

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Southern Company (NYSE: SO)

Southern Company is a leading gas and electric utility holding company that engages in developing, acquiring, and managing power generation assets and sells electricity in the wholesale market. Based in Atlanta, Georgia, it also focuses on natural gas distribution.

The shares of the company traded at US$74.26 at 11:29 am ET on May 9, down 0.55% from their closing price of May 6. Its stock value increased by 9.53% YTD.

The firm has a market cap of US$78.99 billion, a P/E ratio of 34.42, and a forward one-year P/E ratio of 20.97. Its current yield is 3.54%, and its annualized dividend is US$2.72. 

The 52-week highest and lowest stock prices were US$77.23 and US$60.12, respectively. Its trading volume was 5,242,470 as of May 6.

The company reported total operating revenue of US$6.64 billion in the first quarter of fiscal 2022, up 12.5% from US$5.91 billion in the same quarter of the prior year. Its attributable net income was US$1.03 billion, or US$0.97 per share, against an income of US$1.13 billion, or US$1.07 per share in Q1, FY21.

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Top S&P 500 utility stocks to explore in MaySource: Pixabay

Dominion Energy, Inc. (NYSE: D)

Dominion Energy is a power and energy company that produces and distributes energy. It offers electricity, natural gas, and other related services to its customers. It is based in Richmond, Virginia.

The stock of the company traded at US$83.94 at 11:53 am ET on May 9, down 0.10% from its previous closing price. Its stock value rose 7.24% YTD.

The market cap of the company is US$67.70 billion, the P/E ratio is 23.33, and the forward one-year P/E ratio is 20.39. Its current yield is 3.18%, and its annualized dividend is US$2.67.

The stock saw the highest price of US$88.78 and the lowest price of US$70.37 in the last 52 weeks. Its share volume on May 6 was 4,843,929.

The company's total operating revenue was US$4.27 billion in Q1, FY22, as compared to US$3.87 billion in the year-ago quarter. Its net income came in at US$711 million, or US$0.83 per diluted share, as compared to US$1.00 billion, or US$1.23 per diluted share in Q1, FY21.

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Duke Energy Corporation (NYSE: DUK)

Duke Energy is electric power and natural gas holding firm that focuses on offering retail electric services by generating, transmitting, and distributing electricity. The company is based in Charlotte, North Carolina.

The shares of the company traded at US$110.29 at pm ET on May 9, down 0.93% from their closing price of May 6. Its stock value surged 7.57% YTD.

The firm has a market cap of US$84.91 billion, a P/E ratio of 22.37, and a forward one-year P/E ratio of 20.31. Its current yield is 3.54%, and its annualized dividend is US$3.94.

The 52-week highest and lowest stock prices were US$116.33 and US$95.48, respectively. Its trading volume was 2,723,528 on May 6.

The company reported a revenue of US$7.13 billion in Q1, FY22, as compared to US$6.15 billion in the year-ago quarter. Its net income available for the common stockholders came in at US$818 million, or US$1.08 per share, against an income of US$953 million, or US$1.25 per share in Q1, FY21.

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DBA Sempra (NYSE: SRE)

Sempra Energy is an energy infrastructure firm based in San Diego, California. The company specializes in investing, developing, and operating energy infrastructures and provides electricity and gas services to its customers.

The stock of the company traded at US$162.45 at 12:47 pm ET on May 9, down 1.49% from its previous closing price. The SRE stock jumped 24.93% YTD.

The market cap of the company is US$51.38 billion, the P/E ratio is 51.33, and the forward one-year P/E ratio is 19.47. Its current yield is 2.78%, and its annualized dividend is US$4.58. 

The stock saw the highest price of US$173.28 and the lowest price of US$119.56 in the last 52 weeks. Its share volume on May 6 was 1,645,290.

The company reported a revenue of US$3.82 billion in the first quarter of fiscal 2022, as compared to US$3.25 billion in the same quarter of the previous year. Its net income came in at US$657 million, against an income of US$768 million in Q1, FY21.

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Utility stocks: SO, D, DUK, SRE, ED,

Consolidated Edison, Inc. (NYSE: ED)

Consolidated Edison is an energy holding company that focuses on providing energy-related products and services to its customers. The company is based in New York.

The shares of the company traded at US$94.19 at 12:51 pm ET on May 9, up 0.22% from their closing price of May 6. Its stock value soared 10.4% YTD.

The firm has a market cap of US$33.49 billion, a P/E ratio of 21.84, and a forward one-year P/E ratio of 20.93. Its current yield is 3.36%, and its annualized dividend is US$3.16. 

The 52-week highest and lowest stock prices were US$99.22 and US$71.17, respectively. Its trading volume was 1,747,179 on May 6.

The company reported total operating revenue of US$4.06 billion in Q1, FY22, as compared to US$3.67 billion in the year-ago quarter. Its net income came in at US$554 million, or US$1.70 per diluted share, as compared to US$420 million, or US$1.22 per diluted share in Q1, FY21.

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Bottom line:

Amid a market downturn, investors are exploring opportunities in the sector, as utility stocks are considered a low-risk investment. The S&P 500 utility sector gained 0.73% YTD while increasing 9.57% over the past 12 months. The S&P 500 index slipped 13.49% YTD.

However, investors should closely evaluate the companies and other macroeconomic factors before spending on the stocks, given the market volatility.

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