Best Utility Stocks this May 2026

DTE Energy offers a solid dividend yield of 3.02% alongside a robust 1-year return of 8.92% and a substantial 5-year return of 27.48%, indicating strong historical performance. Analysts maintain a consensus rating of "Moderate Buy," with a median 12-month price target of $156.00, suggesting potential for further appreciation in value as the company invests heavily in clean energy initiatives.

DTE Energy has a consensus rating of 'Moderate Buy' from 15 Wall Street analysts, with 9 buy ratings, 4 hold ratings, and 2 strong buy ratings.

DTE Energy plans to invest $10 billion in clean energy over the next decade, adding 900 megawatts of renewable capacity annually for the next five years and targeting over 2,900 megawatts of energy storage by 2042.

DTE Energy will not request an electric rate hike until 2028, due to increased revenue from proposed data centers.

With a dividend yield of 3.19%, Southern Company stands out as an enticing choice for income-focused investors. This major utility, backed by 54 hedge funds, boasts a remarkable track record of 78 consecutive years of dividend payments and 24 years of increases, nearing Dividend Aristocrat status. Analysts currently hold a median price target of $102.50, reflecting a cautious optimism about its future potential in the evolving energy landscape.

Analysts' recommendations for SO stock include 6% Strong Buy, 24% Buy, 59% Hold, 12% Sell, and 0% Strong Sell.

Southern Company is well-positioned to lead in energy innovation, addressing rising demand while ensuring reliability and long-term value.

Southern Company has a strong dividend history, having paid dividends for 78 consecutive years and raised them for 24 years, nearing Dividend Aristocrat status.

Edison International (EIX) stands out as a top-rated utility stock, recognized by Morningstar analysts as one of the best undervalued options for investors in 2026. With a solid dividend yield of 4.70% and a moderate payout ratio of 30.9%, EIX offers a balance between rewarding shareholders and reinvesting for growth. Analysts have set a median 12-month price target of $78.00, with a range from $62.00 to $82.00, indicating strong potential upside.

Edison International (EIX) has a moderate payout ratio of 30.9%, suggesting that its dividend is sustainable while still allowing for reinvestment in growth.

Edison International appears undervalued with a Value Score of A, indicating strong potential for value investors, despite a lower Growth Score of D.

Eversource Energy, a regional utility provider, stands out among recommended utility stocks, showcasing its commitment to reliable income with a dividend yield of 4.12% and a solid dividend payment history of 26 consecutive years. Recent performance has been favorable, delivering a 19.2% return over the past year, slightly surpassing the S&P 500's 18.8% gain. Analysts have a median price target of $75.00, reflecting their cautious optimism with ratings ranging from Sector Underperform to Overweight.

Eversource Energy (ES) has a strong dividend safety record, having paid and increased its dividend for 26 consecutive years.

Eversource Energy has outperformed the S&P 500 over the past year, with a 19.2% gain compared to the S&P 500's 18.8%. Year-to-date, ES has risen 8.7%, while the S&P 500 has declined by 2.1%.

Analysts have set a 2026 price target of $71.44 for Eversource Energy (ES), indicating no expected change from the current stock price, though forecasts may vary with market conditions.

NextEra Energy has demonstrated strong performance with a 1-year return of 45.35% and a solid 5-year return of 24.50%, alongside a dividend yield of 2.48%. Analysts maintain a positive outlook, with a median 12-month price target of $92.50, supported by consistent revenue growth and an expectation for future earnings in the range of $3.92 to $4.02 per share by 2026. Overall, the stock holds an analyst rating of B, with several firms reiterating an "Overweight" stance.

NextEra Energy's revenue increased by 20.7% year-over-year, and analysts project earnings per share of $4.01 for the current fiscal year.

NextEra Energy expects adjusted earnings per share to be between $3.92 and $4.02 in 2026, aiming for the higher end of that range.

The Zacks Consensus Estimate predicts NEE will see earnings per share growth of 7.82% in 2026 and 8.98% in 2027.

MGE Energy (MGEE) offers a dividend yield of 2.29%, but its stock has faced challenges, showing a 1-year return of -10.19% despite a 5-year gain of 9.70%. Analysts maintain a cautious outlook with a median 12-month price target of $73.00 and a consensus rating of Sell, reflecting concerns over its performance and growth prospects, despite anticipated earnings growth of 6.5% per annum in the coming years.

MGE Energy (MGEE) has a consensus rating of Sell from analysts, with 50% recommending Hold and 50% advising Sell.

MGE Energy has a payout ratio of 50%, with solid earnings growth expected; the Zacks Consensus Estimate for 2025 is $3.68 per share, reflecting a growth rate of 10.51%.

MGE Energy's EPS is projected to grow by 6.5% annually, with a forecasted return on equity of 9.9% in three years.

MGE Energy is considered a quality long-term investment, with shareholders typically holding the stock for 10 years or more.