SA Asks: Which utilities stocks are most attractive right now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 05 2025
0mins
Source: SeekingAlpha
Attractive Utility Stocks: Analysts from Gen Alpha recommend Northwest Natural Holding (NWN) for its strong growth and consistent dividend increases, while Power Hedge highlights the rising popularity of utilities due to their recession resistance, with natural gas utilities like Southwest Gas Holdings and RGC Resources offering attractive valuations.
Market Trends: The iShares U.S. Utilities ETF has seen a 5.98% increase this year, contrasting with the S&P 500's decline, indicating that while many utility stocks have become more expensive, there are still opportunities in undervalued natural gas utilities amidst growing demand from data centers.
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Analyst Views on D
Wall Street analysts forecast D stock price to fall
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 68.290
Low
59.00
Averages
64.36
High
70.00
Current: 68.290
Low
59.00
Averages
64.36
High
70.00
About D
Dominion Energy, Inc. provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina. It develops and operates regulated offshore wind and solar power and is the producer of carbon-free electricity in New England. Its Dominion Energy Virginia segment includes Virginia Power’s regulated electric transmission, distribution and generation operations, which serve homes and businesses in Virginia and North Carolina. Its Dominion Energy South Carolina segment includes DESC’s generation, transmission and distribution of electricity to customers in the central, southern and southwestern portions of South Carolina and the distribution of natural gas to residential, commercial and industrial customers in South Carolina. Its Contracted Energy segment includes nonregulated long-term contracted renewable electric generation fleet and renewable natural gas facilities.
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.
Investor Rights Law Firm Investigates Multiple Companies
- Investigation Focus: Halper Sadeh LLC is investigating companies like Dominion Energy, Inc. and AvalonBay Communities, Inc. for potential violations of federal securities laws and breaches of fiduciary duties to shareholders, as the proposed transactions may limit superior competing offers.
- Transaction Details: Dominion Energy is set to sell for 0.8138 shares of NextEra Energy per share, while AvalonBay Communities will transact for 2.793 shares of Equity Residential common stock per share, which could significantly impact shareholder rights.
- Shareholder Rights Protection: Halper Sadeh LLC encourages shareholders to contact them to discuss their rights and options, promising to handle matters on a contingent fee basis, emphasizing their commitment to protecting shareholder interests.
- Legal Support: The firm represents investors globally, focusing on securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors, showcasing their expertise in safeguarding investor rights.
See More
NextEra and Dominion Merge Amid Rising Electricity Demand
- Merger Overview: NextEra Energy has agreed to merge with Dominion Energy, valued at nearly $60 billion, resulting in NextEra shareholders owning approximately 75% of the combined entity, with an expected enterprise value of $420 billion, further solidifying its position as the world's largest utility.
- Shareholder Benefits: Dominion shareholders will receive 0.8138 shares of NextEra for each Dominion share held, along with a one-time cash payment of $360 million, ensuring that shareholders continue to enjoy a stable dividend policy post-merger, appealing to income investors.
- Electricity Demand Surge: Electricity demand is projected to increase by 60% from 2025 to 2045, driven by factors such as data centers, artificial intelligence, and electric vehicles, positioning NextEra to better meet future energy needs and enhance market competitiveness through this merger.
- Regulatory Approval Challenges: NextEra anticipates that the merger will take 12 to 18 months to secure approvals from state and federal regulators, and while there are risks involved, it is expected that regulators will impose requirements to protect consumers, making the success of the merger critical for NextEra's long-term growth potential.
See More
NextEra Energy Merges with Dominion Energy, Expanding Utility Dominance
- Massive Merger Scale: NextEra Energy's merger with Dominion Energy, valued at nearly $60 billion, is expected to create a combined entity with an enterprise value of $420 billion and a market cap of around $250 billion, further solidifying its position as the world's largest utility.
- Shareholder Benefit Assurance: Dominion Energy shareholders will receive 0.8138 shares of NextEra Energy for each share they own, along with a one-time cash payment of $360 million, ensuring that shareholder interests are protected during the merger process.
- Electricity Demand Growth: Electricity demand is projected to increase by 60% from 2025 to 2045, driven by factors such as data centers, artificial intelligence, and electric vehicles, positioning NextEra Energy to better meet future electricity needs and enhance its competitive edge.
- Regulatory Approval Challenges: The merger is expected to take 12 to 18 months to secure approvals from state and federal regulators, and while there are regulatory risks, NextEra Energy's growth rate is anticipated to slightly increase post-merger, enhancing the reliability and diversity of its business.
See More
Warren Buffett's Long-Term Investment Advice
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- Enterprise Products Partners' Stable Returns: Enterprise Products Partners (EPD) is a key player in the North American midstream energy market, operating over 50,000 miles of pipelines with a distribution yield of 5.5%, having increased its distribution for 27 consecutive years, demonstrating resilience and stability in a volatile energy sector.
- NextEra Energy's Renewable Leadership: NextEra Energy (NEE), the largest utility company globally, anticipates a 10% dividend increase this year, aiming for an 8% annual growth in adjusted earnings per share by 2035, showcasing its strong potential in renewable energy and battery storage.
- AI-Driven Market Opportunities: Both Enterprise Products Partners and NextEra Energy are poised to benefit from the increasing demand for natural gas and renewable energy driven by the growing need for power in data centers, with NextEra's planned $66.8 billion acquisition of Dominion Energy further solidifying its position in rapidly expanding markets.
See More
AbbVie and Two Dividend Kings Show Strong Prospects
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- Enterprise Products Partners' Stable Returns: Enterprise Products Partners (NYSE: EPD) is a top player in the North American midstream energy market, operating over 50,000 miles of pipelines with a distribution yield of 5.5%, having increased its distribution for 27 consecutive years, showcasing robust cash flow resilience and expected growth from rising natural gas demand.
- NextEra Energy's Acquisition Plans: As the largest utility company globally, NextEra Energy (NYSE: NEE) plans to acquire Dominion Energy for approximately $66.8 billion, which is expected to strengthen its leadership in renewable energy and battery storage, with dividends projected to grow by about 10% this year.
- AI-Driven Market Opportunities: With the increasing demand for power from data centers, both AbbVie and Enterprise Products Partners are poised to benefit from the AI technology boom, which is expected to drive business growth and enhance their competitive positions in the market.
See More
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- Merger Scale: NextEra Energy announced an all-stock acquisition of Dominion Energy valued at approximately $67 billion, with a projected combined enterprise value of $420 billion if regulatory approval is obtained, potentially reshaping the U.S. utility landscape.
- Regulatory Challenges: Despite the massive scale of the deal, analysts highlight NextEra's poor track record with regulatory approvals, suggesting it may face stringent scrutiny from the Federal Energy Regulatory Commission and various state commissions, increasing the deal's uncertainty.
- Market Reaction: The market's response to the merger is mixed, with Jefferies analysts suggesting that investors may pivot towards safer investments like Duke Energy and Southern Company to mitigate potential risks and uncertainties surrounding the deal.
- LNG Outlook: In the liquefied natural gas sector, Energy Secretary Chris Wright indicated that China is set to become a significant buyer of U.S. crude oil, and Louisiana's ample natural gas supply can support the growth of LNG exports, showcasing the industry's robust development potential.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Investigation Focus: Halper Sadeh LLC is investigating companies like Dominion Energy, Inc. and AvalonBay Communities, Inc. for potential violations of federal securities laws and breaches of fiduciary duties to shareholders, as the proposed transactions may limit superior competing offers.
- Transaction Details: Dominion Energy is set to sell for 0.8138 shares of NextEra Energy per share, while AvalonBay Communities will transact for 2.793 shares of Equity Residential common stock per share, which could significantly impact shareholder rights.
- Shareholder Rights Protection: Halper Sadeh LLC encourages shareholders to contact them to discuss their rights and options, promising to handle matters on a contingent fee basis, emphasizing their commitment to protecting shareholder interests.
- Legal Support: The firm represents investors globally, focusing on securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors, showcasing their expertise in safeguarding investor rights.
See More
NextEra and Dominion Merge Amid Rising Electricity Demand
- Merger Overview: NextEra Energy has agreed to merge with Dominion Energy, valued at nearly $60 billion, resulting in NextEra shareholders owning approximately 75% of the combined entity, with an expected enterprise value of $420 billion, further solidifying its position as the world's largest utility.
- Shareholder Benefits: Dominion shareholders will receive 0.8138 shares of NextEra for each Dominion share held, along with a one-time cash payment of $360 million, ensuring that shareholders continue to enjoy a stable dividend policy post-merger, appealing to income investors.
- Electricity Demand Surge: Electricity demand is projected to increase by 60% from 2025 to 2045, driven by factors such as data centers, artificial intelligence, and electric vehicles, positioning NextEra to better meet future energy needs and enhance market competitiveness through this merger.
- Regulatory Approval Challenges: NextEra anticipates that the merger will take 12 to 18 months to secure approvals from state and federal regulators, and while there are risks involved, it is expected that regulators will impose requirements to protect consumers, making the success of the merger critical for NextEra's long-term growth potential.
See More
NextEra Energy Merges with Dominion Energy, Expanding Utility Dominance
- Massive Merger Scale: NextEra Energy's merger with Dominion Energy, valued at nearly $60 billion, is expected to create a combined entity with an enterprise value of $420 billion and a market cap of around $250 billion, further solidifying its position as the world's largest utility.
- Shareholder Benefit Assurance: Dominion Energy shareholders will receive 0.8138 shares of NextEra Energy for each share they own, along with a one-time cash payment of $360 million, ensuring that shareholder interests are protected during the merger process.
- Electricity Demand Growth: Electricity demand is projected to increase by 60% from 2025 to 2045, driven by factors such as data centers, artificial intelligence, and electric vehicles, positioning NextEra Energy to better meet future electricity needs and enhance its competitive edge.
- Regulatory Approval Challenges: The merger is expected to take 12 to 18 months to secure approvals from state and federal regulators, and while there are regulatory risks, NextEra Energy's growth rate is anticipated to slightly increase post-merger, enhancing the reliability and diversity of its business.
See More
Warren Buffett's Long-Term Investment Advice
- AbbVie's Strong Growth: AbbVie (ABBV), a leading pharmaceutical company, boasts multiple blockbuster drugs and strong growth potential, particularly with its autoimmune drugs Skyrizi and Rinvoq, which are expected to drive sustained growth over the next decade; despite Humira losing patent protection, the company has maintained stability through R&D investments and strategic acquisitions.
- Enterprise Products Partners' Stable Returns: Enterprise Products Partners (EPD) is a key player in the North American midstream energy market, operating over 50,000 miles of pipelines with a distribution yield of 5.5%, having increased its distribution for 27 consecutive years, demonstrating resilience and stability in a volatile energy sector.
- NextEra Energy's Renewable Leadership: NextEra Energy (NEE), the largest utility company globally, anticipates a 10% dividend increase this year, aiming for an 8% annual growth in adjusted earnings per share by 2035, showcasing its strong potential in renewable energy and battery storage.
- AI-Driven Market Opportunities: Both Enterprise Products Partners and NextEra Energy are poised to benefit from the increasing demand for natural gas and renewable energy driven by the growing need for power in data centers, with NextEra's planned $66.8 billion acquisition of Dominion Energy further solidifying its position in rapidly expanding markets.
See More
AbbVie and Two Dividend Kings Show Strong Prospects
- AbbVie's Growth Potential: AbbVie (NYSE: ABBV), a leading pharmaceutical company, boasts multiple blockbuster drugs and has around 60 programs in mid-to-late stage clinical trials, indicating strong growth prospects over the next decade, particularly with its autoimmune disease drugs Skyrizi and Rinvoq.
- Enterprise Products Partners' Stable Returns: Enterprise Products Partners (NYSE: EPD) is a top player in the North American midstream energy market, operating over 50,000 miles of pipelines with a distribution yield of 5.5%, having increased its distribution for 27 consecutive years, showcasing robust cash flow resilience and expected growth from rising natural gas demand.
- NextEra Energy's Acquisition Plans: As the largest utility company globally, NextEra Energy (NYSE: NEE) plans to acquire Dominion Energy for approximately $66.8 billion, which is expected to strengthen its leadership in renewable energy and battery storage, with dividends projected to grow by about 10% this year.
- AI-Driven Market Opportunities: With the increasing demand for power from data centers, both AbbVie and Enterprise Products Partners are poised to benefit from the AI technology boom, which is expected to drive business growth and enhance their competitive positions in the market.
See More
NextEra and Dominion Announce $67 Billion Merger Deal
- Merger Scale: NextEra Energy announced an all-stock acquisition of Dominion Energy valued at approximately $67 billion, with a projected combined enterprise value of $420 billion if regulatory approval is obtained, potentially reshaping the U.S. utility landscape.
- Regulatory Challenges: Despite the massive scale of the deal, analysts highlight NextEra's poor track record with regulatory approvals, suggesting it may face stringent scrutiny from the Federal Energy Regulatory Commission and various state commissions, increasing the deal's uncertainty.
- Market Reaction: The market's response to the merger is mixed, with Jefferies analysts suggesting that investors may pivot towards safer investments like Duke Energy and Southern Company to mitigate potential risks and uncertainties surrounding the deal.
- LNG Outlook: In the liquefied natural gas sector, Energy Secretary Chris Wright indicated that China is set to become a significant buyer of U.S. crude oil, and Louisiana's ample natural gas supply can support the growth of LNG exports, showcasing the industry's robust development potential.
See More
