Top Stock to Buy #4 – Southern Company (SO)
Southern Company (NYSE:SO) is a large-cap electric utility that owns Alabama Power, Georgia Power, Gulf Power and Mississippi Power. According to Credit Suisse, it remains a “best-in-class” utility offering a combination of strong annual earnings growth at 5% to 7%, along with a 4.3% yield.
Over the past 10 years, with dividend reinvestment, investors would have received a compounded annual return of over 11%.
Credit Suisse analysts look for a target of $49. This may seem modest, but the stock’s steady appreciation and dividend increases make it a haven in times of uncertainty.
Technically, the stock’s near-term objective is in the high $40s and is recommended as a long-term buy. Continue to hold SO for its dividend income, stability and performance.