15 Utility Companies to Buy for the Long Run

Utility companies keep the lights on, the heat and cooling systems running, and the water flowing for pretty much everyone every day across America.

Many of these suppliers are also publicly traded companies. Among their ranks are companies that have long earned the title of "widow-and-orphan" stocks because of the reliability of the income they pay in dividends and the stability of their stock prices.

They also are classic defensive stocks, about as recession resistant as an investor can hope to find in today's uncertain markets. And they typically have regulated monopolies in their service areas to boot. Here are 15 to consider.

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Consolidated Edison (NYSE: ED) is a Dividend Aristocrat, a status that goes to stocks that have seen dividend raises for at least 25 straight years. Make that 48 for this provider of steam -- yes, steam -- along with natural gas and electricity to 10 million or so customers in and around New York City.

Con Ed has been publicly traded since 1823, the longest tenure of any stock on the market, and it’s currently yielding about 3.2% at a share price of about $101.

ALSO READ: S&P 500's Best Dividend Aristocrats

This Dividend Aristocrat provides electricity to about 11 million customers in the Sunshine State through its subsidiary, Florida Power & Light. NextEra Energy (NYSE: NEE) has raised its dividend for 28 straight years and is now paying a yield of about 2% at a share price of about $90. This utility also is a major investor in sustainable energy sources such as wind and solar.

There are Dividend Aristocrats and then there are Dividend Kings, those stocks with payout increases for at least 50 straight years. American States Water (NYSE: AWR) is at the top of that noble heap at 69 years.

American States serves a swath of 10 counties in drought-stricken California and is paying a yield of about 1.9% while selling for about $84 a share.

ALSO READ: 3 Top Dividend Kings for the Second Half of 2022

Northwest Natural Holding (NYSE: NWN) has raised its dividend for 66 straight years and is among the higher-yielding utilities at about 4% and a share price of about $49. This owner of Northwest Natural Gas Company provides natural gas, water, and wastewater services across a big swath of Oregon and southwest Washington.

American Electric Power (NASDAQ: AEP) generates and supplies electricity to nearly 5.5 million customers in 11 states both directly and through wholesale arrangements with other electric utility companies and cooperatives. The Ohio-based utility is trading for about $105 a share and yielding about 3%.

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We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Black Hills (NYSE: BKH) is one more of the five utilities among the 44 companies currently on the list of Dividend Kings. Its service area for electricity and natural gas is vast: parts of its home state South Dakota, Montana, Wyoming, Colorado, Arkansas, Kansas, Nebraska, and Iowa. Black Hills stock currently sells for about $77 a share and pays a dividend yield of about 3%.

ALSO READ: 3 High-Yield Energy Stocks You Can Hold for the Rest of Your Life

Water's pretty essential, and Essential Utilities (NYSE: WTRG) provides water, wastewater, and other services to about 7.5 million customers in 10 states under the Aqua and Peoples brands. This Philadelphia-based utility has been in business since 1886 and currently yields about 2% at a share price of about $49.

Vanguard Utilities ETF (NYSEMKT: VPU) isn't a utility, but it makes this list as a way to buy a basket of them without having to pick and choose. This exchange-traded fund (ETF) currently owns 65 stocks and aims to track the benchmark MSCI US IMI Utilities 25/50 Index. You can buy shares for about $167 each and enjoy a yield of about 3%.

ALSO READ: How to Invest in ETFs for Beginners

Charlotte-based Duke Energy (NYSE: DUK) is best known as one of the largest suppliers of electricity to the Carolinas. The company also serves customers in four other states in the Southeast and Midwest and is also involved in wind and solar renewable generation projects and battery storage. Duke stock is selling for about $110 a share and yielding nearly 4%.

California Water Service Group (NYSE: CWT) is another Golden State water utility on the Dividend King list.

Along with 100 communities in California, the company has customers in Washington, New Mexico, Hawaii, and Texas, and it makes additional income renting cell tower sites on its properties, among other ventures.

CWT stock yields about 2% after 55 straight years of dividend bumps and is trading for about $59 a share.

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Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

DTE Energy (NYSE: DTE) has been in business since 1903 and was formally known as Detroit Edison until its 1996 name change. The company provides electricity to 2.2 million customers and natural gas to 1.3 million customers in Michigan. DTE Energy stock trades for about $135 a share and yields about 3%.

ALSO READ: Investing in Renewable Energy Stocks

New Jersey-based American Water Works (NYSE: AWK) is one of America's largest suppliers of water and wastewater services, serving about 14 million people, businesses, schools, and governments in 1,700 communities in 14 states. American Water Works has raised its dividend for 14 straight years, and its stock is now yielding about 2% at a share price of about $153.

Utilities Select Sector SPDR Fund (NYSEMKT: XLU) is another solid choice for investors who want to buy in the sector while spreading the risk among multiple stocks. The fund currently holds 29 stocks that seek to match the performance of the S&P 500 Utilities Select Sector Index. Shares currently sell for about $77 and yield about 3%.

The Southern Company (NYSE: SO) is an Atlanta-based producer and supplier of electricity and natural gas in Georgia, Tennessee, Virginia, and Illinois. This is another big utility, with about 8.7 million customers.

Its stock has seen dividend increases for 22 straight years and is currently selling for about $80 and yielding about 3%.

The Southern Company also is investing heavily in renewables, with 45 solar and 15 wind facilities joining its 24 fossil fuel and three nuclear plants.

Let's wrap up this list with a bit of international flavor. National Grid (NYSE: NGG) is based in London and is a supplier of electricity and natural gas to about 11 million customers in the Midlands and Southwest England, as well as in New York and New England on this side of the pond. NGG stock is trading for about $63 a share and also has the distinction of offering the highest yield on our list at nearly 7%.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

The ability to buy shares in companies that provide among the most essential of products we use in everyday life is something that most investors should not overlook. Hundreds of utilities are available in the public markets. Their stability and the constant demand for their products can make them compelling buy and holds, now and as time goes on.

Marc Rapport has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Duke Energy and National Grid. The Motley Fool has a disclosure policy.