Next Stock Purchase – Southern Company (NYSE: SO)

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.

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