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Utility stocks were once called "widows and orphans" stocks because they were considered so safe and boring. That image isn't far from the view today, noting that utilities are generally looked at as reliable dividend stocks.But things could be about to change thanks to a step change in demand for electricity. Here are 10 utility stocks that present under-the-radar opportunities thanks to the growth the utility sector is about to see. What's behind the change in the utility sector?Before getting into the li ...

Market Overview - The S&P 500 index has reached a new all-time high, with the SPDR S&P 500 ETF Trust (SPY) up 5.3% in 2025 after hitting a 52-week low in April [1] - Technology stocks have driven the recent market rally, but utility stocks have also shown impressive gains, with the Utilities Select Sector SPDR Fund (XLU) up more than 7.7% this year [1] Utility Sector Insights - Utilities may not keep pace with technology stocks in a risk-on environment, but they offer steady income and lower volatility, appealing to certain investors [2] - NextEra Energy (NEE) has a strong business model with its regulated utility and renewable energy segments, despite facing potential cuts to renewable energy subsidies [3][4] - NextEra Energy's stock is projected to increase by 17%, with a current dividend yield of 3.16% [5] Company Profiles NextEra Energy - NextEra Energy serves over five million customers in Florida and is a major player in renewable energy generation [3][4] - The company is well-positioned to benefit from the growing electricity demand for AI data centers [5] American Electric Power (AEP) - AEP operates across 11 states, serving over 5.6 million customers, with 90% of its revenue from regulated operations, contributing to its stability [6][7] - AEP's stock has increased by 12.7% in 2025, with projected earnings growth of around 7% in the next 12 months and a dividend yield of 3.58% [9] Dominion Energy - Dominion Energy has undergone a transformation, with 90% of its revenue now from regulated utility operations, leading to a stock increase of 19.5% in the last 12 months [10][11] - The company has a refreshed dividend yield of 4.67% and is projected to have earnings growth of around 6% in the next 12 months [12]

Industry Overview - Nuclear energy is increasingly recognized as a vital solution for meeting the rising global electricity demand while facilitating the transition to cleaner energy sources, providing a reliable supply of clean energy unlike solar and wind [1] - The U.S. aims to expand its nuclear energy capacity from nearly 100 gigawatts (GW) in 2024 to 400 GW by 2050, supported by executive orders to modernize regulations and accelerate reactor approvals [2] - The International Energy Agency (IEA) projects annual investment in nuclear energy to exceed $150 billion by 2030, up from $65 billion, with installed nuclear capacity potentially surpassing 1,000 GW by 2050 [4] Investment Opportunities - Nuclear energy-related stocks, such as Entergy Corporation, Dominion Energy, and Constellation Energy Corporation, are becoming attractive investment options due to their stable output and growth potential [3] - Entergy Corporation's nuclear plants generate nearly 8 GW, accounting for about 27% of its total capacity, and the company plans to invest $37 billion from 2025 to 2029 to enhance its generation fleet and expand its zero-carbon portfolio [9][12] - Dominion Energy operates four nuclear power stations that produce nearly 40% of its total energy output, focusing on next-generation technologies like small modular reactors (SMRs) to meet future electricity demand [13][14] Company Strategies - Entergy is exploring next-generation nuclear technologies and has secured a permit for a new reactor site, aiming to partner with tech firms to address financial and regulatory challenges [10][11] - Dominion Energy is committed to achieving a net-zero carbon target by 2050, leveraging nuclear power to provide a consistent, emission-free energy foundation [15] - Constellation Energy, the largest nuclear power plant operator in the U.S., accounts for around 10% of the nation's clean energy production and is investing in expanding its nuclear capacity to meet rising demand [16][18] Market Demand - The demand for clean electricity is driven by industrial expansion, urbanization, rising temperatures, AI-powered data centers, and the adoption of electric vehicles, with nuclear power requiring significantly less land compared to other clean energy sources [5] - Tech companies like Meta and Amazon are increasingly turning to nuclear energy as a reliable, low-emission power source, entering long-term agreements with Entergy [11] - Constellation Energy has secured uranium supply contracts extending through the 2030s to ensure long-term fuel security amid geopolitical uncertainties [17]

Geopolitical tensions have been high. Tariff uncertainty could also upend the economy and market. If you are worried about the future, then you'll probably want to buy a safe dividend stock. Perhaps one that, in years past, would have been recommended to widows and orphans. Namely a utility.If you have $1,000 to invest, you'll likely find NextEra Energy (NEE -1.44%), Black Hills (BKH -2.04%), or Dominion Energy (D -1.28%) an attractive option. Each one has a safe business and an attractive dividend yield. B ...

Market Overview - The current market environment is characterized by a significant amount of cash, approximately $7 trillion, held in money-market funds, which is expected to flow into dividend-paying stocks as rates decline [2][10] - Investors have shown a tendency to react to market fears, leading to fluctuations in cash holdings within money-market funds [3] Economic Concerns - The U.S. government's deficit is projected to reach $1.9 trillion for fiscal 2025, with an additional $2.8 trillion expected from the "Big Beautiful Bill" over the next decade, raising concerns about higher Treasury yields and interest rates [4] - This situation creates a potential "doom loop" where increasing debt leads to higher servicing costs, further exacerbating the deficit [4] Investment Opportunities - As interest rates fall, yields on money-market funds and Treasuries are expected to decrease, prompting investors to seek higher income from dividend stocks [10] - Three specific dividend-paying stocks are highlighted as potential beneficiaries of this cash flow: Nuveen Quality Municipal Income Fund (NAD), Dominion Energy (D), and Union Pacific (UNP) [10] Nuveen Quality Municipal Income Fund (NAD) - NAD is currently trading at a 4.9% discount to its net asset value (NAV), providing an opportunity to purchase municipal bonds at a lower price [11] - The fund offers an 8.1% dividend yield, which is tax-free for most Americans, making it an attractive investment [13] Dominion Energy (D) - Dominion Energy offers a dividend yield of 4.9% and is positioned to benefit from the growing demand for energy, particularly in data centers [14] - The stock has potential for recovery as it has resumed dividend hikes after a previous cut, and its forward price-to-earnings ratio of 16 is below its five-year average [15] Union Pacific (UNP) - Union Pacific has a lower yield of 2.4% but is considered to have upside potential due to ongoing trade discussions and tariff negotiations that could positively impact its operations [16][17] - The company has a "Dividend Magnet" effect, indicating that its dividend growth is overdue, which could attract investor interest as cash flows from money-market funds increase [18][19]

Company Performance - Dominion Energy's stock closed at $54.73, reflecting a -1.41% change from the previous day's closing price, underperforming the S&P 500's daily gain of 0.94% [1] - Over the past month, shares of Dominion Energy experienced a loss of 0.47%, lagging behind the Utilities sector's gain of 2.01% and the S&P 500's gain of 1.67% [1] Earnings Projections - Dominion Energy is projected to report earnings of $0.77 per share, indicating a year-over-year growth of 40% [2] - The consensus estimate for revenue is $3.69 billion, reflecting a 5.81% increase from the same quarter last year [2] Full Year Estimates - For the full year, earnings are estimated at $3.39 per share and revenue at $15.37 billion, showing changes of +22.38% and +6.33% respectively from the previous year [3] - Recent revisions to analyst estimates suggest positive near-term business trends, which are interpreted as a favorable sign for the business outlook [3] Valuation Metrics - Dominion Energy is currently trading at a Forward P/E ratio of 16.38, which is a discount compared to the industry average Forward P/E of 18 [6] - The company's PEG ratio stands at 1.21, while the average PEG ratio for the Utility - Electric Power industry is 2.63 [6] Industry Ranking - The Utility - Electric Power industry holds a Zacks Industry Rank of 70, placing it in the top 29% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, indicating that top-rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1: Dominion Energy - Dominion Energy is undergoing a turnaround to improve its financial position after facing challenges due to a complicated business model [3][4] - The company has been selling assets and is now primarily a regulated electric utility, offering a dividend yield of 4.8%, which is above the average utility yield of 2.9% [4] - While the current dividend is considered safe, it is not expected to grow in the near term due to an elevated payout ratio, which needs to be reduced to below 70% for future growth [5][7][8] - Earnings are projected to grow between 5% and 7% annually, which may lead to improved dividend growth in the future [7] Group 2: Western Midstream Partners - Western Midstream Partners operates midstream assets and offers a high cash distribution yield of nearly 9.5% [9] - The company expects to generate $1.3 billion to $1.5 billion in free cash flow this year, sufficient to cover its distribution and capital expenditures [10] - With a leverage ratio below 3.0, Western Midstream has financial flexibility for acquisitions and growth projects, targeting organic investments with mid-teens returns [11] - The company recently increased its payout by 4% and anticipates future distribution growth at a low- to mid-single-digit rate [12] Group 3: Chevron - Chevron's stock has declined nearly 20% recently, resulting in an attractive dividend yield of 5% [13] - The company has a strong history of dividend stability, having increased its dividend for 38 consecutive years, including a 5% hike earlier this year [14] - Chevron expects to grow production at a compound annual rate of 6% through 2026 and could generate $9 billion in incremental free cash flow between 2024 and 2026 [15] - The potential acquisition of Hess and ongoing arbitration proceedings could further enhance cash flows, leading to larger dividends for shareholders [15]

Company Overview - Dominion Energy is a major American utility company with over four decades of operation, providing electricity and natural gas to more than 7 million clients across 20 states [1] - The company employs approximately 14,000 individuals, making it one of the largest utility providers in the United States [1] Investment Focus - The article emphasizes the importance of fundamental analysis on dividend and growth equities across various sectors to guide new and inexperienced investors towards long-term financial independence [1]

Company Overview - Dominion Energy Inc., based in Richmond, VA, was founded in 1909 and is involved in producing and transporting energy in the United States. The company operates in both regulated and non-regulated electricity distribution, generation, and transmission businesses, and sells electricity at wholesale prices to rural electric cooperatives and municipalities [12]. Zacks Rank and Style Scores - Dominion Energy holds a Zacks Rank of 3 (Hold) with a VGM Score of B, indicating a moderate outlook [13]. - The company has a Momentum Style Score of A, reflecting a positive trend with shares up 5.9% over the past four weeks [13]. - Two analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $3.39 per share [13]. Investment Considerations - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Dominion Energy is recommended for investors' consideration [14].