Sectors & IndustriesUtilitiesUtilities - Diversified

Best Diversified Utility Stocks to Buy Now (2025)

Top diversified utility stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best diversified utility stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best diversified utility stocks to buy right now are:

Unitil (NYSE:UTL) is the #1 top diversified utility stock out of 12 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Unitil (NYSE:UTL) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Unitil (NYSE:UTL) has a Due Diligence Score of 34, which is -4 points lower than the diversified utility industry average of 38.

UTL passed 11 out of 38 due diligence checks and has average fundamentals. Unitil has seen its stock lose -21.62% over the past year, underperforming other diversified utility stocks by -26 percentage points.

Black Hills (NYSE:BKH) is the #2 top diversified utility stock out of 12 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Black Hills (NYSE:BKH) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Black Hills (NYSE:BKH) has a Due Diligence Score of 42, which is 4 points higher than the diversified utility industry average of 38.

BKH passed 14 out of 38 due diligence checks and has strong fundamentals. Black Hills has seen its stock return 12.24% over the past year, overperforming other diversified utility stocks by 8 percentage points.

Black Hills has an average 1 year price target of $66.00, an upside of 1.93% from Black Hills's current stock price of $64.75.

Black Hills stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Black Hills, 0% have issued a Strong Buy rating, 50% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Aes (NYSE:AES) is the #3 top diversified utility stock out of 12 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Aes (NYSE:AES) is: Value: B, Growth: C, Momentum: C, Sentiment: D, Safety: C, Financials: C, and AI: C.

Aes (NYSE:AES) has a Due Diligence Score of 53, which is 15 points higher than the diversified utility industry average of 38.

AES passed 19 out of 38 due diligence checks and has strong fundamentals. Aes has seen its stock lose -0.07% over the past year, underperforming other diversified utility stocks by -4 percentage points.

Aes has an average 1 year price target of $15.83, an upside of 11.34% from Aes's current stock price of $14.22.

Aes stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Aes, 66.67% have issued a Strong Buy rating, 0% have issued a Buy, 16.67% have issued a hold, while 16.67% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 10 diversified utility stocks that have issued dividends in the past year, the 3 diversified utility stocks with the highest dividend yields are:

Avista (NYSE:AVA) has an annual dividend yield of 4.89%, which is 2 percentage points higher than the diversified utility industry average of 2.91%. Avista's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Avista's dividend has shown consistent growth over the last 10 years.

Avista's dividend payout ratio of 82.4% indicates that its high dividend yield is sustainable for the long-term.

Black Hills (NYSE:BKH) has an annual dividend yield of 4.14%, which is 1 percentage points higher than the diversified utility industry average of 2.91%. Black Hills's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Black Hills's dividend has shown consistent growth over the last 10 years.

Black Hills's dividend payout ratio of 66.7% indicates that its high dividend yield is sustainable for the long-term.

Aes (NYSE:AES) has an annual dividend yield of 3.71%, which is 1 percentage points higher than the diversified utility industry average of 2.91%. Aes's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Aes's dividend has shown consistent growth over the last 10 years.

Aes's dividend payout ratio of 44% indicates that its dividend yield is sustainable for the long-term.

Diversified utility stocks were up 0.56% in the last day, and up 1.77% over the last week.

We couldn't find a catalyst for why diversified utility stocks are up.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued diversified utility stocks right now are:

Aes (NYSE:AES) is the most undervalued diversified utility stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Aes has a valuation score of 57, which is 16 points higher than the diversified utility industry average of 41. It passed 4 out of 7 valuation due diligence checks.

Aes's stock has dropped -0.07% in the past year. It has underperformed other stocks in the diversified utility industry by -4 percentage points.

Black Hills (NYSE:BKH) is the second most undervalued diversified utility stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Black Hills has a valuation score of 43, which is 2 points higher than the diversified utility industry average of 41. It passed 3 out of 7 valuation due diligence checks.

Black Hills's stock has gained 12.24% in the past year. It has overperformed other stocks in the diversified utility industry by 8 percentage points.

Unitil (NYSE:UTL) is the third most undervalued diversified utility stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Unitil has a valuation score of 43, which is 2 points higher than the diversified utility industry average of 41. It passed 3 out of 7 valuation due diligence checks.

Unitil's stock has dropped -21.62% in the past year. It has underperformed other stocks in the diversified utility industry by -26 percentage points.

83.33% of diversified utility stocks rated by analysts are a buy right now. On average, analysts expect diversified utility stocks to rise by 2.03% over the next year.

0% of diversified utility stocks have a Zen Rating of A (Strong Buy), 0% of diversified utility stocks are rated B (Buy), 66.67% are rated C (Hold), 33.33% are rated D (Sell), and 0% are rated F (Strong Sell).