Reliable Utility Stocks

3 Reliable Utility Stocks for Steady Income

Investors typically purchase utility stocks for their safety and dividend yields. Indeed, utility stocks have often been referred to as “widow and orphan” stocks due to their consistency and reliable dividend payouts year after year.

With the ongoing war in Ukraine, above-normal inflation, and the potential for a recession, investors looking to reduce volatility in their portfolios could consider utility stocks. These 3 reliable utility stocks have dividend yields above the S&P 500 average and are also undervalued, which could lead to double-digit annualized returns over the next several years.


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3 Reliable Utility Stocks

Portland General Electric (POR)

Portland General Electric is an electric utility based in Portland, Oregon, serving more than 950,000 customers across 51 cities. The company owns or contracts for more than 3.5 gigawatts of energy generation, encompassing gas, coal, wind, solar, and hydro sources.

In 2024, the corporation generated $3.5 billion in revenue. The utility company is diversified by the customer, with 36% of retail deliveries going to residential customers, 32% to commercial clients, and 32% to industrial clients. The company forecasts that by 2030, 80% of the power it delivers to customers will be carbon-free and 100% carbon-free by 2040.

On April 18th, 2025, Portland General Electric announced a 5% increase in the quarterly dividend to $0.525 per share.

Portland General reported its first-quarter 2025 results on April 25, 2025. The company reported net income of $100 million for the quarter, equivalent to $0.91 per diluted share on a GAAP basis, compared to $1.08 per diluted share in Q1 2024.

In the quarter, residential, commercial, and industrial deliveries rose by 0.8%, 0.2%, and 17.9%, respectively. Leadership maintained its full-year 2025 guidance for adjusted earnings per share at $3.23 at the midpoint.

POR management upgraded the company’s long-term EPS growth guidance to 5% to 7% from 4% to 6% previously. As of April 2025, Portland General maintained that long-term guidance. Leadership also estimates that the company can grow the dividend by 5% to 7% over the long term, with a midpoint of 6%, which is consistent with the trailing 10-year average dividend growth rate of 5.9%. 

Portland General will generate this earnings growth through increased annual energy deliveries, resulting from commercial growth and strong industrial energy demand growth due to customer expansion and the development of data centers. Rate increases, customer additions, and completion of construction projects will all further fuel Portland General’s earnings growth.POR has increased its dividend for 19 consecutive years making it a Dividend Contender. Total returns are estimated to reach 16.2% per year over the next five years

Portfolio Insight - Dividend Yield History POR
Source: Portfolio Insight*

New Jersey Resources (NJR)

New Jersey Resources provides natural gas and clean energy services, transportation, distribution, asset management, and home services through its five main subsidiaries. The company owns both regulated and non-regulated operations.

NJR’s principal subsidiary, New Jersey Natural Gas (NJNG), owns and operates natural gas transportation and distribution infrastructure, serving over 500,000 customers. NJR Clean Energy Ventures (CEV) invests in and operates solar projects to provide customers with low-carbon solutions.

NRJ Energy Services manages a portfolio of natural gas transportation and storage assets, as well as provides physical natural gas services to customers in North America.

The midstream subsidiary owns and invests in several large midstream gas projects. Finally, the home services business provides heating, central air conditioning, water heaters, standby generators, and solar products to residential homes.

New Jersey Resources reported second-quarter 2025 results on May 5th, 2025, for the period ending March 31st, 2025. Second quarter net income of $204.3 million compared favorably to the prior-year quarter’s $120.8 million.

Consolidated net financial earnings (NFE) amounted to $178.3 million, compared to net financial earnings (NFE) of $138.6 million in Q2 2025 and NFE per share of $1.78 compared to $1.41 per share one year ago.

Management has raised its guidance for fiscal 2025, now expecting NFEPS to be in the range of $3.15 to $3.30 from $3.05 to $3.20 at the previous guidance.

The dividend payout ratio for the company on a net financial earnings basis has been historically very safe, especially for a utility company, which can often safely pay out a large portion of its earnings. We expect the company to continue increasing the dividend without a hitch. NJR stock currently yields 4.0%, and total returns are estimated at 14.2% annually over the next five years.

Portfolio Insight - Dividend Growth NJR
Source: Portfolio Insight*

Eversource Energy (ES)

Eversource Energy is a diversified holding company with subsidiaries that provide regulated electric, gas, and water distribution services in the Northeastern United States. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. ES serves more than four million utility customers. It is our third reliable utility stock.

The regulated utility is organized into four operating segments. Electric Distribution is comprised of the distribution businesses of The Connecticut Light and Power Company, NSTAR Electric Company, and the Public Service Company of New Hampshire. These subsidiaries distribute electricity to retail customers in Connecticut, Massachusetts, and New Hampshire. 

Electric Transmission includes transmission facilities owned by the three subsidiaries of the Electric Distribution segment. These transmit electricity throughout New England. The Natural Gas Distribution segment consists of the NSTAR Gas, EGMA, and Yankee Gas subsidiaries. Together, these distribute natural gas to more than 900,000 customers throughout Massachusetts and Connecticut. 

Lastly, the Water Distribution segment operates five separate regulated water utilities in Connecticut, Massachusetts, and New Hampshire. These businesses serve nearly 250,000 customers in 73 towns and cities. The company anticipates that its Aquarion water businesses will be divested by the end of 2025. 

On May 1, ES shared its first-quarter earnings report for the period ended March 31, 2025. The company’s total operating revenue surged 23.6% year-over-year to $4.12 billion during the quarter. Continued system investments and base distribution rate increases led to this top-line growth in the quarter. ES generated $1.50 in non-GAAP EPS for the quarter, which was up 0.7% over the year-ago period. The regulated utility’s dividend is also reasonably sustainable, with the payout ratio expected to be in the low 60% range for 2025. This should help the Dividend Champion build on its 25-year dividend growth streak in the future. Annual expected returns could reach 14.2% per year going forward.

Related Articles About Eversource Energy on Dividend Power

Portfolio Insight - Dividend Yield History ES
Source: Portfolio Insight*

Disclosure: No positions in any stocks mentioned.

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Bob Ciura
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Bob Ciura is President of Content at Sure Dividend. Bob has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. Bob received a bachelor’s degree in Finance from DePaul University, and an MBA with a concentration in Investments from the University of Notre Dame.

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