Market Volatility Rises, Low-Volatility ETFs Become Investment Favorites
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 23 2026
0mins
Source: Fool
- Increased Market Volatility: In 2023, the CBOE Volatility Index (VIX) surged from 14 to nearly 30, currently stabilizing around 24, indicating heightened uncertainty and fear in the market, prompting investors to seek ways to reduce portfolio volatility.
- Recommended Low-Volatility ETF: The iShares MSCI USA Min Vol Factor ETF (USMV) holds 170 low-volatility stocks with a management fee of only 0.15%, primarily concentrated in defensive sectors like technology, financial services, and healthcare, making it suitable for investors seeking stable returns.
- Alternative Investment Option: The Invesco S&P 500 Low Volatility ETF (SPLV) consists of about 100 S&P 500 securities with the lowest realized volatility over the past 12 months, carrying a management fee of 0.25%, focusing on defensive sectors such as utilities and real estate, ideal for those looking to avoid high volatility risks.
- Performance Comparison: Year-to-date, SPLV has risen approximately 1.4%, while USMV has declined about 2.1%, contrasting with the broader S&P 500's drop of around 4.2%, highlighting the relative resilience of low-volatility ETFs in turbulent markets.
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Analyst Views on SO
Wall Street analysts forecast SO stock price to fall
17 Analyst Rating
4 Buy
11 Hold
2 Sell
Hold
Current: 94.510
Low
45.00
Averages
92.34
High
109.00
Current: 94.510
Low
45.00
Averages
92.34
High
109.00
About SO
The Southern Company is an energy provider. The Company owns three traditional electric operating companies, Southern Power Company and Southern Company Gas. The traditional electric operating companies-Alabama Power, Georgia Power and Mississippi Power-are operating public utility companies providing electric service to retail customers in three Southeastern states in addition to wholesale customers in the Southeast. The Southern Power Company develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects, and sells electricity at market-based rates in the wholesale market. The Southern Company Gas is an energy services holding company whose primary business is the distribution of natural gas in four states - Illinois, Georgia, Virginia, and Tennessee, through the natural gas distribution utilities. Southern Company Gas is also involved in several other businesses that are complementary to the distribution of natural gas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Southern Co Announces Quarterly Dividend Increase
- Dividend Increase: Southern Company has declared a quarterly dividend of $0.76 per share, representing a 2.7% increase from the previous dividend of $0.74, indicating ongoing improvements in cash flow and profitability, which enhances investor confidence.
- Yield Performance: The forward yield of 3.23% not only attracts income-seeking investors but also reflects the company's competitiveness in the current market environment, particularly within the utility sector.
- Payment Schedule: The dividend will be payable on June 8, with a record date of May 18 and an ex-dividend date also on May 18, ensuring shareholders receive timely returns and further solidifying the relationship between the company and its investors.
- Market Focus: As demand for electric vehicles and data centers surges, Southern Company’s position as a core utility stock becomes increasingly significant, and despite facing valuation pressures in the market, its status as a dividend aristocrat continues to attract long-term investors.
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Southern Company Increases Dividend to $3.04 per Share
- Dividend Increase: Southern Company has announced an 8-cent increase in its dividend, raising the annualized rate to $3.04 per share, which underscores the company's commitment to shareholder returns and is expected to boost investor confidence and attract more capital inflows.
- Consistent Payout Record: The company has paid dividends for 79 consecutive years, with each payment being equal to or greater than the previous quarter, demonstrating its stable cash flow and profitability, which enhances its credibility and attractiveness in the market.
- Historic Milestone: This dividend increase marks the 25th consecutive year of raising dividends, reflecting the company's ability to maintain strong financial performance even amid economic fluctuations, further solidifying its leadership position in the energy sector.
- Employee Contribution: CEO Chris Womack emphasized that the dedication of nearly 30,000 employees is key to the company's success, and this team spirit not only enhances company performance but also creates sustainable value for shareholders.
See More
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- Southern Company's Stability: Southern Company has maintained a steady dividend for 78 years, with increases in the last 24 years, demonstrating its reliability as a conservative utility; despite past delays and cost overruns on nuclear projects, it is now generating electricity, which is expected to support long-term growth.
- NextEra Energy's Growth Potential: NextEra Energy combines a large regulated utility with one of the world's largest solar and wind businesses, achieving a 10% compound annual growth rate in dividends over the past decade, although growth is expected to slow to 6% after 2026, its clean energy segment remains the primary growth driver.
- Risk vs. Reward Consideration: While Southern Company is suitable for conservative dividend investors, NextEra's clean energy business carries risks associated with market price fluctuations, which may not appeal to those seeking stable income, necessitating careful consideration of individual risk tolerance when choosing between them.
- Market Performance Comparison: Southern Company has a market cap of $106 billion with a dividend yield of 3.12%, while NextEra Energy boasts a market cap of $191 billion and a yield of 2.53%; despite NextEra's higher dividend growth rate, its lower yield may lead conservative investors to prefer Southern Company.
See More
Comparative Analysis of Southern Company and NextEra Energy
- Southern Company Stability: Southern Company has maintained a steady dividend for 78 years, with increases in each of the last 24 years, and while its 3.1% yield is below the initial purchase level, the long-term potential of its nuclear projects makes it an ideal choice for conservative investors.
- NextEra Energy Growth Engine: NextEra's dividend has grown at a compound annual rate of 10% over the past decade, although it is expected to slow to 6% after 2026, with a 2.7% yield reflecting the market's premium valuation of its clean energy business, appealing to more aggressive investors.
- Risk and Reward Trade-off: Southern Company focuses on providing reliable, low-cost power, making it suitable for conservative investors, while NextEra's clean energy business faces risks from market price fluctuations, which may not be ideal for those seeking stable income.
- Investment Recommendation Differences: While both companies are well-run utilities, Southern Company is more appropriate for conservative investors, whereas NextEra Energy attracts those willing to take on risks for potentially higher returns.
See More
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- Cost Savings: The project is expected to help PRECorp reduce annual wholesale power costs by up to $1 million while providing critical backup power capacity during outages and extreme conditions, thereby enhancing system reliability.
- Technology Integration: The integrated solution will feature a 5 MW battery energy storage system and 1.25 MWdc of ground-mounted solar generation, offering greater operational flexibility and supporting improved peak demand management to ensure the system is ready for future energy demands.
- Project Timeline: The project is anticipated to take approximately two years, with a target operational date in 2027, showcasing PowerSecure's deep expertise in distributed energy infrastructure and commitment to enhancing grid resiliency.
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- Environmental Activity Promotion: During Earth Week, Georgia Natural Gas collaborates with Lenox Square and eWaste/ePlanet to host an electronics recycling event, encouraging community members to responsibly recycle unwanted electronic devices for free, further promoting sustainable living.
- Community Engagement Opportunities: Participants can learn how to enroll in the Greener Life program and enter giveaways for a chance to win a $1,000 Simon® gift card, enhancing customer engagement and brand loyalty through interactive participation.
- Convenient Recycling Services: Volunteers will assist residents by removing electronic items directly from vehicles at the event, ensuring a smooth recycling process, which reflects Georgia Natural Gas's commitment to community service and solidifies its leadership position in environmental initiatives.
See More
Southern Co Announces Quarterly Dividend Increase
- Dividend Increase: Southern Company has declared a quarterly dividend of $0.76 per share, representing a 2.7% increase from the previous dividend of $0.74, indicating ongoing improvements in cash flow and profitability, which enhances investor confidence.
- Yield Performance: The forward yield of 3.23% not only attracts income-seeking investors but also reflects the company's competitiveness in the current market environment, particularly within the utility sector.
- Payment Schedule: The dividend will be payable on June 8, with a record date of May 18 and an ex-dividend date also on May 18, ensuring shareholders receive timely returns and further solidifying the relationship between the company and its investors.
- Market Focus: As demand for electric vehicles and data centers surges, Southern Company’s position as a core utility stock becomes increasingly significant, and despite facing valuation pressures in the market, its status as a dividend aristocrat continues to attract long-term investors.
See More
Southern Company Increases Dividend to $3.04 per Share
- Dividend Increase: Southern Company has announced an 8-cent increase in its dividend, raising the annualized rate to $3.04 per share, which underscores the company's commitment to shareholder returns and is expected to boost investor confidence and attract more capital inflows.
- Consistent Payout Record: The company has paid dividends for 79 consecutive years, with each payment being equal to or greater than the previous quarter, demonstrating its stable cash flow and profitability, which enhances its credibility and attractiveness in the market.
- Historic Milestone: This dividend increase marks the 25th consecutive year of raising dividends, reflecting the company's ability to maintain strong financial performance even amid economic fluctuations, further solidifying its leadership position in the energy sector.
- Employee Contribution: CEO Chris Womack emphasized that the dedication of nearly 30,000 employees is key to the company's success, and this team spirit not only enhances company performance but also creates sustainable value for shareholders.
See More
Comparative Investment Analysis: Southern Company vs. NextEra Energy
- Southern Company's Stability: Southern Company has maintained a steady dividend for 78 years, with increases in the last 24 years, demonstrating its reliability as a conservative utility; despite past delays and cost overruns on nuclear projects, it is now generating electricity, which is expected to support long-term growth.
- NextEra Energy's Growth Potential: NextEra Energy combines a large regulated utility with one of the world's largest solar and wind businesses, achieving a 10% compound annual growth rate in dividends over the past decade, although growth is expected to slow to 6% after 2026, its clean energy segment remains the primary growth driver.
- Risk vs. Reward Consideration: While Southern Company is suitable for conservative dividend investors, NextEra's clean energy business carries risks associated with market price fluctuations, which may not appeal to those seeking stable income, necessitating careful consideration of individual risk tolerance when choosing between them.
- Market Performance Comparison: Southern Company has a market cap of $106 billion with a dividend yield of 3.12%, while NextEra Energy boasts a market cap of $191 billion and a yield of 2.53%; despite NextEra's higher dividend growth rate, its lower yield may lead conservative investors to prefer Southern Company.
See More
Comparative Analysis of Southern Company and NextEra Energy
- Southern Company Stability: Southern Company has maintained a steady dividend for 78 years, with increases in each of the last 24 years, and while its 3.1% yield is below the initial purchase level, the long-term potential of its nuclear projects makes it an ideal choice for conservative investors.
- NextEra Energy Growth Engine: NextEra's dividend has grown at a compound annual rate of 10% over the past decade, although it is expected to slow to 6% after 2026, with a 2.7% yield reflecting the market's premium valuation of its clean energy business, appealing to more aggressive investors.
- Risk and Reward Trade-off: Southern Company focuses on providing reliable, low-cost power, making it suitable for conservative investors, while NextEra's clean energy business faces risks from market price fluctuations, which may not be ideal for those seeking stable income.
- Investment Recommendation Differences: While both companies are well-run utilities, Southern Company is more appropriate for conservative investors, whereas NextEra Energy attracts those willing to take on risks for potentially higher returns.
See More
PowerSecure Partners with PRECorp on Energy Storage Project
- Project Background: PowerSecure is collaborating with PRECorp and NRTC to advance a utility-scale battery energy storage and solar generation project in Moorcroft, Wyoming, aimed at addressing grid-level peak demand challenges driven by industrial growth and rural load expansion.
- Cost Savings: The project is expected to help PRECorp reduce annual wholesale power costs by up to $1 million while providing critical backup power capacity during outages and extreme conditions, thereby enhancing system reliability.
- Technology Integration: The integrated solution will feature a 5 MW battery energy storage system and 1.25 MWdc of ground-mounted solar generation, offering greater operational flexibility and supporting improved peak demand management to ensure the system is ready for future energy demands.
- Project Timeline: The project is anticipated to take approximately two years, with a target operational date in 2027, showcasing PowerSecure's deep expertise in distributed energy infrastructure and commitment to enhancing grid resiliency.
See More
Georgia Natural Gas Celebrates 16 Years of Earth Day Leadership
- Carbon Offset Achievement: Georgia Natural Gas has enabled customers to offset nearly one billion pounds of CO₂e through its Greener Life program, showcasing the company's long-term commitment to environmental stewardship, enhancing brand image, and attracting environmentally conscious customers.
- Environmental Activity Promotion: During Earth Week, Georgia Natural Gas collaborates with Lenox Square and eWaste/ePlanet to host an electronics recycling event, encouraging community members to responsibly recycle unwanted electronic devices for free, further promoting sustainable living.
- Community Engagement Opportunities: Participants can learn how to enroll in the Greener Life program and enter giveaways for a chance to win a $1,000 Simon® gift card, enhancing customer engagement and brand loyalty through interactive participation.
- Convenient Recycling Services: Volunteers will assist residents by removing electronic items directly from vehicles at the event, ensuring a smooth recycling process, which reflects Georgia Natural Gas's commitment to community service and solidifies its leadership position in environmental initiatives.
See More
