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Top 4 American utility stocks to buy for reliable revenue streams

Mircea Vasiu

Utility stocks have the reputation of providing reliable revenue streams, especially useful when the stock market might correct. Here are four American utility stocks to buy: Sempra, Dominion Energy, Exelon Corporation, and Eversource Energy. 

One of the reasons investors prefer utility stocks in a portfolio is their reliable revenue streams. Such stocks tend to outyield stocks from other sectors. Moreover, they are known for having less volatility than other equities.

So here are four American utility stocks to buy for a reliable revenue stream: Sempra, Dominion Energy, Exelon Corporation, and Eversource Energy.

Sempra

Is a multi-utility company from San Diego, California. It supplies natural gas and generates and distributes electricity to millions of customers, and it was founded in 1998.

The stock price advanced by more than 10% in the last twelve months, and the company pays a dividend too. The forward dividend yield is 3.25%, and Sempra increased its annual payments to shareholders for the past 11 consecutive years.

Dominion Energy

Dominion Energy employs over 17,000 people, and it is headquartered in Virginia. It produces energy and serves about 7 million customers.

The company operates with a gross profit margin higher than the sector median by 9.07% and pays a quarterly dividend. The forward yield is 3.36%, and the stock price advanced 11.52% in the past 12 months.

Exelon Corporation

Exelon is an electric utility from Chicago, Illinois. It generates electricity using wind, hydroelectric, and biomass facilities, among others, and it pays a quarterly dividend.

Analysts are bullish on the stock price. Out of the 43 analysts covering the stock, 34 have issued buy ratings and 8 have neutral ones. Only 1 analyst has issued a sell rating for the Exelon Corporation stock.

Most recently, Morgan Stanley has maintained its buy recommendation with a price target of $49.

Eversource Energy

Eversource Energy distributes electricity and natural gas and it is based in Springfield, Massachusetts. The company operates with a gross profit margin of 48.17%, higher than the sector median by 14.52%, and it pays a quarterly dividend.

The forward dividend yield is 3.09%, and the dividend payout ratio is 62.27%. At the current stock market price, the company is valued at $28.53 billion, and the enterprise value is $48.94 billion.