Retirees Should Put These 4 High-Yield Utility Stocks on Their Buy List for Next Week
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Regulated utilities pay retirees out of monopoly service territories where state commissions set the rates. That structure is why their dividends usually keep coming when the economy slows and paychecks elsewhere get cut. This week’s list adds a timing hook and a growth story. The quarterly dividend calendar for these four names gets busy starting with the ex-dividend date for Southern Company (NYSE:SO | SO Price Prediction) on November 16, and all four are adding new electricity load from data centers and other large customers.
Southern Company: 25 Straight Years of Raises and Rising Guidance
Southern Company pays $0.76 per share each quarter. At a recent price of $93.60 and an annualized payout of $3.04, the forward yield works out to about 3.25%. Shares go ex-dividend Monday, so anyone buying next week will start collecting with the payment after the December 7 check.
Dividend safety: On the Q3 call, management said it expects full-year adjusted EPS of $4.70[1], which is $0.10 higher than the top of our original 2026 adjusted earnings guidance range. The annualized dividend comes to roughly 65% of that figure. Southern is aiming for 17% FFO to debt by 2029[1], has completed all $5.3 billion of its forward-priced equity, and sees only about $2 billion of remaining equity need through 2030. The payout record is about as strong as utilities get. The chief executive pointed to "25 consecutive years of dividend increases, more than three-quarters of a century having never reduced our dividend"[1], and the dividend history shows the quarterly rate rising from $0.64 in February 2021 to the current $0.76.
Bull case: Southern has 21 gigawatts[1] of signed large-load contracts plus another 7 gigawatts in late stages. The CFO said "the minimum bills that cover at least 100% of the cost being introduced into the system are fixed,"[1] so the growth comes with cost protection already built in. The stock trades at about 19 times forward earnings.
Risk: Funding growth means issuing more shares. Share dilution cut 9 cents from Q3 adjusted EPS, and management said the capital plan could approach $100 billion over a five-year period[1].
Artesian Resources: 136 Consecutive Quarterly Dividends and a Fresh Pullback
The water utility in this group is Artesian Resources (NASDAQ:ARTNA), serving the Delmarva Peninsula. It recently raised its quarterly dividend to $0.33 per share[2], the second increase this year. At $32.70, the forward yield is about 3.99%. Shares bought before the November 19 ex-dividend date qualify for the November 30 payment.
Dividend safety: The annualized payout equals about 57.5% of trailing EPS of $2.27, a comfortable level for a regulated water company. Artesian’s free cash flow tells a different story: its capital expenditures significantly exceed operating cash flow, and it invested $40.8 million[2] in infrastructure during the first nine months of the year. That means rate recovery covers the dividend over time, while internal cash alone does not. Its track record is excellent. The latest declaration was the company’s 136th consecutive quarterly dividend[2], and the dividend history shows continuous quarterly payments from 1999 through 2026, with repeated increases along the way.
Bull case: Q3 diluted EPS of $0.65[2] beat the $0.61 consensus. Nine-month revenue rose 6.4%[2] to $90.4 million. The stock slipped 4.91% over the past week and sits below its $36.98 52-week high. At about 14 times trailing earnings, it is the cheapest name on this list.
Risk: A Delaware rate case is still pending, and Artesian is collecting temporary rate increases that are subject to refund[2]. A weak final order could force refunds and squeeze earnings.
Evergy: A New 4% Raise and Higher Guidance
Evergy (NASDAQ:EVRG) serves Kansas and Missouri. It just raised its quarterly dividend to $0.7225 from $0.695, putting the annualized payout at $2.89. At $88.78, that is a forward yield of about 3.26%. The ex-dividend date is November 20, which makes this the first chance to lock in the higher rate, paid December 18.
Dividend safety: Trailing dividends of $2.78 equal about 61.9% of trailing EPS of $4.49. That sits just above the company’s target band, and the CEO said "We increased our dividend by 4%, which supports our long-term payout ratio target range of 50% to 60%."[3] Earnings growth is closing that gap, since 2026 adjusted EPS guidance rose to $4.35 to $4.50 from $4.14 to $4.34[4]. A beta of 0.469 shows how little the stock tends to follow broad market moves. The dividend history shows a raise every year since Evergy’s first $0.46 quarterly payment in 2018.
Bull case: Q3 adjusted EPS of $2.58[3] beat the $2.32 consensus. Evergy also signed amendments worth about 250 MW of new load and a data center developer’s letter of intent for a 1.4 GW expansion. Management reaffirmed 6%–8%+[3] annual EPS growth through 2030, which points to more dividend raises ahead.
Risk: The company lists counterparty risk from new large data center customers among its risks. If a big data center customer struggles, the growth plan and the payout ratio math both become harder.
Dominion Energy: The Highest Yield Here, With a Merger in Play
Dominion Energy (NYSE:D) pays $0.6675 per quarter, or $2.67 a year. At $67.67, that is a forward yield of about 3.95%, the highest among the electric utilities here. Shares go ex-dividend on December 4, with payment on December 20.
Dividend safety: The quarterly dividend fell from $0.94 to $0.63 in late 2020 and has held at $0.6675 since March 2022. The payout uses about 88.1% of trailing GAAP EPS of $3.03, but only about 74.8% of the $3.57[5] operating EPS guidance midpoint. Management now expects results in the top half[6] of that range. On the October 30 call, the CFO said Dominion was "reaffirming all other existing financial guidance provided on our fourth-quarter earnings call, including credit, dividend, and long-term growth guidance."[7] He also described 2027 and 2028 as "relatively lighter equity years."
Bull case: Q3 revenue rose 24.08%[6] to $5.617 billion, and operating EPS of $1.28 beat the $1.21 consensus, the company’s seventh straight EPS beat. Dominion has over 54 gigawatts[7] of data center capacity in various stages of contracting. The forward P/E of about 18 sits below the trailing 22, which signals earnings growth is expected to catch up. Keep an eye on the proposed NextEra Energy (NYSE:NEE) merger, which goes to an evidentiary hearing before Virginia regulators in November[6].
Risk: That merger adds uncertainty. Management expects the deal to close "in the second half of 2027,"[7] and regulatory conditions could change how the dividend is handled.
Why This Utility Group Fits a Retirement Income Plan
Each of these four companies earns regulated returns, pays quarterly, and is adding new load that supports future dividend growth. Southern and Artesian have the longest consecutive records, Evergy has the newest raise, and Dominion has the highest electric-utility yield in exchange for a frozen payout and pending merger. Taken together, they give retirees a steady quarterly income stream built on rate-regulated cash flow (the kind of setup a dividend ladder is built around, which we walk through in a free guide to living on the checks without ever selling a share).
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Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
