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11 Top-Rated Utility Stocks to Buy Now

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09.09.2020

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While perhaps not as thrilling as the tech startups that make next-generation consumer electronics or fancy cloud computing tools, utility stocks still play a very important role in any well-rounded investment portfolio.

After all, the most dynamic technologies aren't worth anything if there isn't electricity to power them. In 2020, power is nearly as crucial as food and shelter to consumers – and in a digital economy, it's even more important for businesses.

That adds up to a strong baseline of reliable revenue, regardless of the ups and downs of the unemployment rate or consumer spending. And as a result, many low-risk investors find themselves drawn to utility stocks for the stability as well as the dividends typically paid out by this sector.

If you're interested in utilities for any of these reasons, here are 11 utility stocks that are grabbing the attention of Wall Street analysts recently.

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One of the largest utility stocks on this list as measured by market value, AES Corp. (AES, $17.57) is also one of the most unconventional names in the space.

Despite being located in Virginia, this company operates as a diversified power generation and utility company across South America, Asia and Europe, as well as limited regions of the U.S. Across these disparate geographies, AES also uses a wide range of fuels and technologies to generate electricity, including natural gas, coal, oil, hydroelectric, solar, wind and biomass. It all adds up to an incredibly diversified utility in an already low-risk sector of the stock market.

AES is one of the best-rated utility stocks to buy at the moment, with five Strong Buys, four Buys and just one Hold. The bull camp includes UBS analyst Daniel Ford (Buy), who raised his price target in August to $20 per share "to reflect a $2/share increase in the value for AES' MCAC (Mexico, Caribbean and Central America) and South America businesses."

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The new kid on the block, Brookfield Renewable Corporation (BEPC, $50.89), is just another spin on an already great company.

In July, Brookfield Renewable Partners LP (BEP) executed a "unit split" that gave current shareholders shares in BEPC – a publicly listed Canadian corporation that gives investors another way to invest in Brookfield's renewable assets. One of the biggest differences is tax treatment, which BEPC explains here.

This dedicated green energy utility owns and operates renewable power assets across the world that include hydroelectric, wind and solar plants. Specifically, it boasts 19,300 MW of capacity and 5,301 generating facilities in North America, South America, Europe and Asia. Hydroelectric is the largest part of its portfolio at about 64%.

There's little in the way of analyst coverage early on, but the pros at Wells Fargo have weighed in with an Overweight rating (Buy) for this utility stock in August.

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Edison International........

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