This High-Yield Dividend Stock Can Keep Your Portfolio Safe in a Storm

Core Insights - Market volatility in 2025 has led investors to reassess their portfolios, with defensive stocks like the Utilities Select Sector SPDR Fund (XLU) gaining 18.3% year to date due to the consistent demand for electricity [1] Company Performance - AES reported a 30.6% increase in diluted earnings per share for Q3 2025, driven by new renewable projects and updated rates in Indiana and Ohio [2] - The company's net income reached $517 million, an increase of $302 million from the previous year, supported by improved tax results and earnings from renewable projects [6] - AES's adjusted EBITDA rose to $830 million, up $132 million, with adjusted EPS at $0.75 [6] Financial Metrics - AES has a dividend yield of 5.1%, significantly higher than the utility sector average of 3.75% [5] - The forward price-earnings ratio for AES is 6.31x, compared to the sector's 19.46x, indicating that the shares are relatively affordable for value investors [5] Growth Drivers - AES's growth is primarily attributed to its clean energy and utility businesses, despite a slight setback from the sale of AES Brasil [7] - The company has annual sales of $12.28 billion and net income of $1.68 billion, reflecting a stable balance sheet and reliable earnings growth [7] - AES is advancing its Bellefield project, which will be the largest solar-plus-storage site in the country, with a 15-year deal with Amazon to bring 1,000 MW online [8]