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10 Utility Stocks to Buy and Hold Forever

Utility Stocks

Utility stocks are attractive investment options for diversifying a portfolio with low-risk stocks that are the most likely to perform at healthy levels. Electricity is a service that is necessary to power much of the world around us. Natural gas and water are other utilities that provide for the necessities of life. The stocks are typically a good investment, although some utility companies have a better prospectus than others. If you're considering an investment in this sector of the market, here are ten utility stocks to buy in 2022 and hold forever.

10. NiSource

Kiplinger suggests considering NiSource. the company combines natural gas and electricity in its utility services. It's an old and established company that dates back to the year 1847. The Indiana-based company operates power plants and natural distribution outlets throughout six states in the USA serving over four million customers. The market value is $12.5 billion with analysts recommending a buy, with the majority ranking the stock as a strong buy. It's an exceptional option for the generation of renewable energy through its new projects that comply with sustainability initiatives. it's a company that continues to evolve with the times.

9. Entergy

Entergy is an electric utility that serves customers in the states of Mississippi, Texas, Louisiana, and Arkansas. the utility serves 3 million customers with hydroelectric, coal, nuclear, oil, and gas generation facilities. It is a diverse utility stock that maintains holdings in various segments of the energy and utility industries. Its market value is $23.7 billion with analysts recommending a buy with the majority recommending a strong buy. The diversity of the markets that this utility stock encompasses makes it a lower risk as dips in one segment of the energy industry are more likely to be offset by growth in other holdings. Entergy is one of the best stocks to own for 2022 and beyond.

8. Exelon

Exelon is a utility stock that has holdings in hydroelectric, solar, wind, and nuclear-generating facilities. It also operates fossil fuel power plants. It is another diverse stock within the utility market that offers a lowered risk due to the spread of interests. It's one of the largest providers of energy with over ten million customers through its six operating utilities. It owns Potomac Electric Power Company, PECO Energy Company, Commonwealth Edison, Delmarva Power & Light, Baltimore Gas and Electric, and Atlantic City Electric. The market value is $46.2 billion. Analysts recommend it as a buy with most recommending the stock as a strong buy for 2022. Recent spot checks show stock prices are up by fourteen percent.

7. Dominion Energy

Dominion Energy is among the large utility companies with a market value of $67.1 billion. The company produces the energy that it distributes directly to consumers. It maintains a portfolio of assets that produce 30 gigawatts of electricity. Dominion Energy serves seven million consumers with power utilities. Stock prices for Dominion energy are up by five percent with projections of 9 percent in the long run. it's recommended as one of 2022's best retirement stocks with recommendations from analysts to buy, with most recommending it as a strong buy.

6. American Electric Power Co. Inc.

US News recommends American Electric Power Co. Inc. stocks as a consideration. Experts predict that AEP will continue to perform well with a dividend yield of 32%. The company offers utilities that focus on coal replacement with utilities based on regulated renewables along with a growing transmission rate base.

5. Duke Energy Corp.

Duke Energy Corporation is a utility that is in a superior position to weather the storms of the inflationary period the nation is experiencing in 2022. Duke Energy is making an effort to decarbonize the world by retiring its portfolio of coal operations. It is believed to have an advantage in the utility sector over other stocks with exceptional performance and gains over the past several years. It's on analysts' list ore recommended utility stocks for 2022 to buy for the long term.

4. Consolidated Edison Inc

Consolidated Edison Inc. is a large-cap utility stock that pays dividends. It has a solid track record of payments that goes back for forty-six consecutive years. It's a stock that many experts recommend watching, and some view it as a good time to buy and hold onto the stock for long-term portfolios. Consolidated Edison Inc's longrunning dividend payments also include increases for the duration of the payment streak, which is impressive by any standards.

3. Brookfield Infrastructure Partners

The Motley Fool recommends considering the Brookfield Infrastructure Partners as a utility stock for long-term investment. It transmits and distributes regulated electric and natural gas services to consumers along with a port terminal. Brookfield Infrastructure operated multiple utility companies, with a diversified portfolio that includes oil, and natural gas midstream assets. Its natural resource assets are backed by regulated rates or long-term contracts which gives it a stable and predictable cash flow. It also operates data centers, fiber-optic cables, cell towers, and data transmission assets, along with transport through railroads, toll roads, and ports to support LNG export operations.

2. NextEra Energy

NextEra Energy is a company that operates in Florida as a regulated electric utility provider. The company additionally offers diversification with ownership and operation of natural gas pipelines and other renewable energy projects. It generates income that is predictable thanks to its long-term fixed-rate contracts. It's projected to increase dividend payments by ten percent annually.

1. American Water Works

Although the dividend yield is among the lowest on the list, American Water Works is the nation's largest publicly traded utility in the wastewater and water industry. Most of its revenue is generated by the provision of water and wastewater services. It is a direct provider to the military and homeowners with related services. Now is the time to buy American Water Works stock as it's estimated to see a rise in its earnings per share with a compound yearly rate between seven to ten percent from now through 2025.

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Allen Lee

Written by Allen Lee

Allen Lee is a Toronto-based freelance writer who studied business in school but has since turned to other pursuits. He spends more time than is perhaps wise with his eyes fixed on a screen either reading history books, keeping up with international news, or playing the latest releases on the Steam platform, which serve as the subject matter for much of his writing output. Currently, Lee is practicing the smidgen of Chinese that he picked up while visiting the Chinese mainland in hopes of someday being able to read certain historical texts in their original language.

Read more posts by Allen Lee

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