Best Utility Stocks to Buy in 2025

Investing in Top Utility Stocks

By Matthew DiLallo – Updated Jul 29, 2025 at 1:16 PM | Fact-checked by Frank Bass

Key Points

Utility stocks offer stable investments and reliable dividends, suitable for retirement income.
Top utilities like American Water Works show potential with growth plans and strong financials.
Investors should prioritize utility stocks with robust financial profiles and growth prospects.

Utility stocks are publicly traded companies that provide electricity, natural gas, and water services to customers. Utilities typically make stable investments. Demand for utility services tends to remain steady, even during a recession.

The rates utilities charge for delivering these services are either regulated (approved by a government entity) or contractually guaranteed (nonregulated). So, utilities generate reliable earnings, allowing them to pay dividends with above-average yields.

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A row of utility meters. — Image source: Getty Images.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
American Water Works (NYSE:AWK)	$29.1 billion	2.22%	Water Utilities
Brookfield Infrastructure (NYSE:BIPC)	$5.8 billion	3.87%	Gas Utilities
NextEra Energy (NYSE:NEE)	$170.6 billion	2.67%	Electric Utilities

Data as of Oct 23, 2025.

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NYSE: AWK

American Water Works

Today's Change

(-0.30%) $-0.43

Current Price

$143.73

Key Data Points

Market Cap

$29B

Day's Range

$142.85 - $145.42

52wk Range

$118.74 - $155.50

Volume

Avg Vol

1.3M

Gross Margin

43.20%

Dividend Yield

0.02%

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NYSE: BIPC

Brookfield Infrastructure

Today's Change

(-4.62%) $-2.12

Current Price

$43.80

Key Data Points

Market Cap

$6B

Day's Range

$43.76 - $45.91

52wk Range

$32.08 - $47.71

Volume

863K

Avg Vol

599K

Gross Margin

62.53%

Dividend Yield

0.04%

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An electrical grid next to three wind turbines at sunset. — Image source: Getty Images.

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NYSE: NEE

NextEra Energy

Today's Change

(-1.37%) $-1.15

Current Price

$82.84

Key Data Points

Market Cap

$171B

Day's Range

$82.47 - $84.22

52wk Range

$61.72 - $86.74

Volume

2.3K

Avg Vol

9.9M

Gross Margin

36.79%

Dividend Yield

0.03%

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The best utility stocks offer above-average growth for less risk

These utility companies all have top-tier financial profiles. As a result, they have the flexibility to expand operations while also increasing their dividends. Utility stocks with dual growth drivers have the power to produce attractive total returns for investors over the long term. That makes them stand out as excellent investments.

Given the resilient demand for their services, their rate structures, and their long-term investment programs, top-tier utilities should be able to continue increasing their earnings even if the economy slows in the future. That makes adding a utility to your portfolio a smart investment if you're seeking to benefit from its income and stable growth profile.

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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@MatthewDiLallo

Matt DiLallo has positions in Brookfield Infrastructure and NextEra Energy. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy.