1.Duke Energy
DUK (NYSE)
Duke Energy, a major regulated electric utility, presents an appealing investment opportunity with a current dividend yield of approximately 3.52%. Trading 5% below its fair value, it boasts a narrow economic moat that supports its prospects for steady growth. Analysts have a median 12-month price target of $135, indicating potential upside, while recent ratings reflect a balanced outlook with firms like Barclays maintaining an Overweight position.
Pros:
- Major utility with a large customer base
- Stable dividend payments
Cons:
- Trading below fair value
- Potential regulatory risks
2.American Electric Power Company
AEP (NYSE)
American Electric Power Company, a leading regulated utility in the U.S., offers a robust dividend yield of 3.15% and has returned 16.37% over the past year. Analysts have a median price target of $126.00, reflecting confidence in its value, especially as it currently trades 9% below fair value. Recognized as one of Forbes' America's Best Employers for Tech Workers 2025, AEP's stability and strong market position make it an appealing choice for income-focused investors.
Pros:
- Strong historical returns
- Large market cap and customer base
Cons:
- Trading below fair value
- Potential regulatory challenges
3.Edison International
EIX (NYSE)
Edison International stands out as an undervalued utility, boasting a robust dividend yield of 5.75% and an Overweight rating from analysts. With an average 12-month price target of $63.80, there's potential for appreciation alongside a steady 9.88% return over the past five years, making it an attractive opportunity for income-focused investors.
Pros:
- Strong dividend yield
- Consistent dividend growth history
Cons:
- Market volatility risk
- Regulatory risks in the utility sector
4.Eversource Energy
ES (NYSE)
Eversource Energy serves over 4 million customers in the Northeast and offers an attractive dividend yield of 4.47%. Currently trading at an 8% discount, the stock has a 12-month price target averaging around $71, with some analysts suggesting it could rise as high as $81. Despite facing regulatory challenges in Connecticut, the stock has delivered a solid 21.29% return over the past year, making it a potential option for investors seeking reliable income.
Pros:
- Diversified utility with a large customer base
- Strong dividend yield
Cons:
- Recent negative long-term returns
- Regulatory uncertainties
5.Alliant Energy
LNT (NASDAQ)
Alliant Energy is a regulated electric and gas utility poised for significant growth, evidenced by a planned capital expenditure of $13.4 billion from 2026 to 2029. With a 3.06% dividend yield and an impressive 11.98% return over the past year, it stands out as a strong investment choice. Analysts maintain a bullish stance, with a consensus rating of Buy and a median price target of $73.00, underscoring its potential for continued appreciation.
Pros:
- Strong customer growth
- Consistent dividend payments
Cons:
- Recent negative short-term returns
- High capital expenditure plans
Final Words
As you evaluate the best utility stocks this February 2026, remember to consider options like Edison International for their strong dividend yield and analyst ratings. Take time to compare these investment opportunities and conduct your own research to make informed decisions that align with your financial goals.
Frequently Asked Questions
Edison International (EIX) is currently rated as Overweight by analysts and offers a dividend yield of 5.78%. The stock has shown a 1-year return of 8.38% and a 3-month return of 10.05%, making it an attractive option in the utility sector.
Edison International has a dividend yield of 5.78%, with dividends distributed quarterly. The next dividend payment is set at $0.8775.
In the last year, Edison International has achieved a return of 8.38%. Over the past three months, the stock has increased by 10.05%.
Investing in utility stocks can come with risks such as regulatory changes, market volatility, and fluctuations in energy prices. It's important to consider these factors when evaluating utility investments.
Utility stocks are generally considered stable investments because they often provide consistent dividends and are less volatile than other sectors. However, their growth potential may be lower compared to more aggressive sectors like technology.
When evaluating utility stocks, consider factors such as the company's dividend yield, market cap, historical performance, and any analyst ratings. It's also essential to look at the company's growth outlook and how it fits into your overall investment strategy.
