My next stock purchase will be an established utility company. Southern Company, through its subsidiaries, operates as a utility company that provides electric service in the southeastern United States. The company generates, transmits, and distributes electricity through coal, nuclear, oil and gas, and hydro resources.
Them company pays a nice steady dividend around 5% and is fairly valued with a P/E of about 16. Definitely not the most exciting company, but considered a relatively conservative investment that will provide a steady dividend and moderate capital appreciation over the long-term. There may be some risk with nuclear energy coming under scrutiny, but I believe it is minimal — 15% of Southern’s electricity production comes from nuclear generation.
The stock has a 4-star CAPS rating from Motley Fool. Current price is $38.31 per share.