Top Analysts on Wall Street Highlight 3 Utility Stocks Offering Strong Dividend Yields
Investor Interest in Dividend Stocks: During market uncertainty, investors often seek dividend-yielding stocks, which typically have high free cash flows and provide substantial payouts to shareholders.
Portland General Electric Company (POR): With a dividend yield of 4.94%, analysts have mixed ratings; Barclays maintains an Equal-Weight rating with a price target cut to $43, while JP Morgan holds a Neutral rating with a reduced target of $45.
The AES Corporation (AES): Offering a 5.22% dividend yield, both JP Morgan and Barclays analysts maintain Overweight ratings, raising their price targets to $15 and $14 respectively after the company reported better-than-expected quarterly earnings.
Avista Corporation (AVA): With a 5.33% dividend yield, Jefferies has a Hold rating with a lowered price target of $39, while B of A Securities reinstated an Underperform rating at a target of $37 following disappointing quarterly results.
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- Rate Case Filing: On January 16, 2026, Avista submitted a four-year rate case to the Washington Utilities and Transportation Commission, with a decision expected by late 2026 to address rising costs associated with power generation and infrastructure modernization.
- Customer Impact Analysis: If approved, the average residential electric bill in Washington is projected to rise from $124.23 to $157.94 by 2030, with an initial increase of $17.21 in 2027, reflecting the company's need for long-term investments to maintain safe and reliable service.
- Service Type Increases: Proposed increases vary by service type, with a 13.9% rise for most electric schedules in 2027 and a 5.0% increase for general natural gas service, highlighting the urgency of addressing escalating operating and maintenance costs.
- Customer Support Initiatives: Avista offers various support programs, including personalized bill discounts and energy-saving tools, to help customers manage rising energy costs, demonstrating the company's commitment to community responsibility and customer care.
- Reason for Rate Increase: Avista's four-year rate case filing aims to address rising electricity production and procurement costs, with a proposed 13.9% increase in 2027, which could significantly impact household energy expenses and customer affordability.
- Customer Impact Analysis: If approved, the average residential electric customer in Washington would see their monthly bill rise from $124.23 to $157.94, with an initial increase of $17.21, highlighting the direct financial implications for customers amid rising operational costs.
- Infrastructure Investment: The proposal includes investments in modernizing the electric grid and hydropower infrastructure to enhance safety and reliability, reflecting Avista's strategic focus on mitigating climate change and natural disaster risks.
- Customer Support Initiatives: Avista offers various customer assistance programs, including bill discounts and energy-saving tools, to help manage rising energy costs, demonstrating the company's commitment to community support and customer care.
- Rating Adjustment: UBS analyst William Appicelli lowered Eversource Energy's price target from $78 to $73 while maintaining a Neutral rating, reflecting a cautious outlook on the company's future performance, which may impact investor confidence.
- Market Reaction: JP Morgan analyst Jeremy Tonet cut the price target from $72 to $71 and maintained an Underweight rating, indicating concerns about the overall outlook for the utilities sector, which could put pressure on the stock price.
- Dividend Yield: Eversource Energy boasts a dividend yield of 4.59%, which continues to attract income-seeking investors despite the target price reduction, highlighting the company's appeal in uncertain market conditions.
- Earnings Performance: The company reported better-than-expected quarterly results on November 4, and while analysts maintain a cautious stance on future prospects, the strong earnings performance may provide some support for the stock price.

- Total Funding: In the third and fourth quarters of 2025, the Avista Foundation awarded a total of $336,150 in grants to 76 nonprofit organizations, demonstrating a sustained commitment to community development across Washington, Idaho, Oregon, Alaska, and Montana.
- Diversity of Projects: The funded initiatives span various fields including arts education, outdoor stewardship, and youth development, with organizations like Friends of KSPS in Washington receiving support to expand arts education, reflecting the foundation's emphasis on cultural diversity.
- Community Impact: By funding organizations such as the Idaho Trails Association, the Avista Foundation not only engages youth in outdoor activities but also promotes sustainable community development, enhancing public awareness of environmental stewardship.
- Long-term Commitment: Since its establishment in 2002, the Avista Foundation has granted over $17 million, focusing on supporting vulnerable populations and education, which underscores its strategic significance in fostering economic and cultural vitality.

- Sustainability Commitment: Avista's latest Corporate Responsibility report outlines commitments in four areas—environment, people, customers, and communities—demonstrating the company's ambition towards clean energy goals.
- Transparency and Accountability: CEO Heather Rosentrater emphasized that the report serves not only as a summary of progress but also as a testament to the company's unwavering commitment to transparency and continuous improvement, aimed at enhancing stakeholder trust.
- Customer Service Coverage: Avista Utilities provides electric service to 424,000 customers and natural gas to 383,000 customers, covering a service area of 30,000 square miles with a population of 1.7 million across eastern Washington, northern Idaho, and parts of Oregon.
- Adherence to Industry Standards: The report includes new information adhering to multiple sustainability reporting frameworks such as the Task Force on Climate-Related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB), showcasing the company's leadership in the industry.
- Market Pullback Prediction: Kenny Polcari forecasts a 10-12% market pullback in 2026, primarily due to anticipated volatility from the upcoming midterm elections, which could undermine investor confidence and market stability.
- Focus on Economic Growth: Post-midterm elections, investors are expected to shift their attention towards economic growth, GDP, and potential tax cuts from Trump's initiatives, which may influence market direction and capital flows.
- Portfolio Diversification: Polcari emphasizes the importance of a well-diversified portfolio, suggesting a cautious approach towards the tech sector in the first half of 2026 while looking at other sectors like industrials, healthcare, and basic materials to navigate market uncertainties.
- Utilities Outlook: He particularly highlights the utilities sector as likely to perform well next year due to energy demands from AI and data centers, indicating a positive long-term outlook for investments in this area.







