Utilities are companies that serve power, natural gas, and water to practically every building in the United States.
Consequently, the stock market’s most significant and dependable equity investments are found among these strictly regulated corporations.
Utility stocks are less risky investments than other choices because of their consistent profitability and dividend payouts. Therefore, they are often the best options for retirement income plans.
Moreover, utilities are more defensive since their minimal volatility makes them an excellent investment during economic uncertainty.
Not every utility stock offers lucrative returns for investors. However, there are also more distinguishing features that all top utilities have in common, giving them the ability to excel.
We’ve examined the five top utility stocks for 2022 to help you decide which ones to include in your portfolio.
NRG Energy, Inc.
NRG Energy is a diversified energy firm that serves residential, commercial, and industrial clients throughout North America by generating electricity and offering energy solutions and natural gas.
The second quarter financial figures were released on August 4. Although the company’s sales increased significantly, its net income fell sharply.
The profit decrease was blamed on fewer gains from mark-to-market on hedge positions, even though more minor impairment charges somewhat offset this.
NextEra Energy Inc.
NextEra Energy is a large electricity generator from renewable sources, including solar, wind, and nuclear power in North America. It distributes this electricity to wholesale and retail customers.
Financial figures for the second quarter of the fiscal year 2022 were released by NextEra Energy on July 22.
NextEra Energy’s operational revenues increased by more than three times the amount that would have been needed to provide the same level of net profitability in the past.
Through at least 2024, the business expects to see healthy sales and earnings per share and intends to increase dividends by about 10% per share.
American Electric Power, Inc. (AEP)
American Electric Power is a utility company that has been in operation since 1906 and is headquartered in Columbus, Ohio. It provides service to around 200,000 square miles across 11 states. American is one of the top U.S. power generators, serving 5.5 million customers and boasting roughly 31,000 MW of producing capacity, 188 MMWH of U.S. electricity sales in 2021, and $88 B.N. in assets.
A few of AEE’s clean energy objectives include increasing its renewable generation portfolio to around 50% of its total capacity by 2030, decreasing emissions by 80% from 2000 levels by 2050, and reaching zero carbon dioxide emissions by 2050. They also plan to invest $8.2 billion in renewables through 2026.
New Fortress Energy, Inc.
Natural gas storage and electricity generation are only two of the many activities that New Fortress Energy funds, develops, and manages as part of its infrastructure business.
For example, the 120 MW green hydrogen plant will be constructed in Beaumont, Texas, and the firm announced the partnership with Plug Power Inc., a leading producer of turnkey hydrogen solutions, on August 4.
Fortress Energy claims its new facility will be among the largest of its sort in North America.
Vistra Corp.
Vistra is a holding corporation whose businesses produce electricity, buy and sell energy at wholesale levels, manage commodities risks, and sell energy products to the general public.
The Emerald Grove Solar Facility in Texas was officially launched and declared operational for the summer on June 7 by the firm.
This project is the third of seven renewable and energy storage initiatives the corporation will roll out in Texas over the next several years. The present combined capacity of the three projects is 418 MW, and they are all part of the company’s plan to transition to carbon-free electricity production.
Read More: 5 Best Utility Stocks To Buy for 2022