Better Buy: NextEra Energy or Southern Co.?
On the surface, it would seem like NextEra Energy (NYSE: NEE) and The Southern Company (NYSE: SO) are very similar, since they are both large U.S. utilities. Once you get past that top level, however, there are a lot of important differences. Is one better than the other, or are they just meant for different types of investors? Here's a quick comparison.
When investors look at the utility sector, often the goal is to find a reliable dividend stock. Both NextEra and Southern would fall into that category. However, they reside in different camps. The average utility, using the Vanguard Utility Index ETF (NYSEMKT: VPU) as a proxy, has a 2.8% dividend yield. Southern's yield is 3.9%, and NextEra's yield is 2%. If your goal is maximizing your income stream right now, Southern wins hands down.
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Source Fool.com
