Utilities stocks are considered “old economy” stocks. The expected rise In inflation is causing the attractiveness of growth stocks to go down and value stocks or stocks in the Dow Jones index to go up. Utilities stocks tend to be somewhat resistant to pandemics and recessions. People need electricity to light their homes, and businesses need a basic level of energy consumption even during challenging times. Utilities stocks have been on the rise during the past few months. A company like Eversource Energy can be a good candidate to study for investors looking to buy top utility stock. Another advantage of investing in a utility stock is the consistent dividend payments. Since utilities can only charge a certain price as regulations allow them to, their business models are very predictable. Their cash flows are also predictable, and a slow-growth environment means cash is available for distribution to the shareholders.
More About Eversource Energy
Eversource Energy is among the ten largest utility companies in the United States. It has over 3.2 million electric customers, 881,000 natural gas customers, and 216,000 water customers. The company is the largest utility in the New England area and does business in Massachusetts, Connecticut, and New Hampshire. ESG has become a big issue among utilities because governments around the world are proactively working towards reducing their carbon emissions. Older power plants that run on coal tend to be large emitters of greenhouse gasses. Therefore, there is pressure on utility companies to gradually transform their energy sources to cleaner alternatives. Eversource is the only US energy company to target carbon neutrality by the year 2030. Investors looking for a utilities regulated electric stock can explore Eversource Energy.
Buy Top Utility Stock
Eversource Energy trades under the ticker symbol ES on the New York stock exchange. Its stock closed at $84 on 21st May 2021. The dividend yield at the time was 2.87%, and the 52-week high was $96.66.
