The electric utility industry constantly evolves as new technologies are introduced to meet consumers’ growing demand for green energy and sustainable solutions. Investing in the proper electric utility stocks can help you capitalize on these shifts and increase your portfolio returns over time. These companies are a vital part of the world’s energy network, providing electricity to homes and businesses across the globe. As electricity demand grows, the electric utility sector continues to grow. As a result, these companies can offer great investment opportunities for investors seeking to expand their portfolio with trusted, blue-chip stocks. Here is an introduction to some of the best electric utility stocks to invest in today.
Companhia Paranaense de Energia (ELP)
Investment research firm Morningstar has named ELP one of the best electric utility stocks to invest in. ELP is a Brazilian utility with a significant presence in the country’s Northeast region. This company has a strong track record of growing its business, backed by a culture of innovation and entrepreneurial spirit. In addition, ELP has plans to expand its installed capacity by 4% annually while also increasing its focus on renewable energy sources. As a result, ELP is well-positioned to capitalize on Brazil’s growing energy demand, which is expected to increase by 15% annually.
Eversource Energy (ES)
Eversource Energy is one of the largest electric utilities in the U.S., serving approximately 3.5 million customers throughout New England and New York. This company strongly focuses on renewable energy, with 72% of its energy mix generated from green sources. Eversource also has a significant presence in the natural gas market, providing natural gas to approximately 2.5 million customers. This diversified energy portfolio has helped generate consistent earnings growth over the past five years. As a result, it has positioned this company as one of the best electric utility stocks. In addition, Eversource has a long-term growth outlook, with plans to invest approximately $9 billion in new capital projects during the next five years. This forecasted capital expenditure will contribute to solid earnings growth over the next five years.
MGE Energy (MGEE)
MGE Energy is one of the best electric utility stocks to invest in, thanks to its strong track record of revenue and earnings growth. This company has grown its earnings per share by an average of 8.2% per year over the past ten years, which is well above the industry average.MGEE’s competitive advantage lies in its diversified energy mix, which includes regulated gas and electric operations. This diversified energy portfolio has allowed this company to significantly boost its earnings with minimal impact from regulatory changes and other external factors. In addition, MGE Energy is actively investing in its regulated electric business, which is expected to boost overall earnings growth and strengthen this company’s long-term outlook.
Xcel Energy (XEL)
Xcel Energy is one of the leading electric utility companies in the U.S., serving approximately 10 million customers. This company strongly focuses on natural gas and renewable energy sources, with 71% of its energy mix generated from green sources. Xcel has a long-term focus on developing new sustainable energy sources to serve its customers and maintain its leadership position in the industry. This company has invested more than $35 billion in new power generation facilities since 2001, including approximately $10 billion in renewable energy projects. Xcel’s consistent earnings growth, diversified energy mix, and long-term growth outlook have placed this company among the best electric utility stocks to invest in.
The electric utility industry constantly evolves as new technologies are introduced to meet consumers’ growing demand for green energy and sustainable solutions. Investing in the proper electric utility stocks can help you capitalize on these shifts and increase your portfolio returns over time. To help you select the best stocks to invest in, remember to look for companies with solid fundamentals and consistent earnings growth. These stocks may not be the best ones to buy now, but they can significantly add to any investor’s portfolio.