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Best Diversified Utility Stocks to Buy Now (2023)

Top diversified utility stocks in 2023 ranked by overall Zen Score. See the best diversified utility stocks to buy now, according to analyst forecasts for the utilities - diversified industry.

According to Zen Score, the 3 best diversified utility stocks to buy right now are:

Montauk Renewables (NASDAQ:MNTK) is the top diversified utility stock with a Zen Score of 50, which is 11 points higher than the diversified utility industry average of 39. It passed 17 out of 33 due diligence checks and has strong fundamentals. Montauk Renewables has seen its stock lose -18.78% over the past year, underperforming other diversified utility stocks by -7 percentage points.

Montauk Renewables has an average 1 year price target of $7.75, a downside of -17.82% from Montauk Renewables's current stock price of $9.43.

Montauk Renewables stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Montauk Renewables, 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.

Allete (NYSE:ALE) is the second best diversified utility stock with a Zen Score of 50, which is 11 points higher than the diversified utility industry average of 39. It passed 17 out of 38 due diligence checks and has strong fundamentals. Allete has seen its stock lose -16.88% over the past year, underperforming other diversified utility stocks by -5 percentage points.

Allete has an average 1 year price target of $53.67, a downside of -2.62% from Allete's current stock price of $55.11.

Allete stock has a consensus Sell recommendation according to Wall Street analysts. Of the 3 analysts covering Allete, 0% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a hold, while 33.33% have issued a Sell rating, and 33.33% have issued a Strong Sell.

Otter Tail (NASDAQ:OTTR) is the third best diversified utility stock with a Zen Score of 48, which is 9 points higher than the diversified utility industry average of 39. It passed 17 out of 38 due diligence checks and has strong fundamentals. Otter Tail has seen its stock return 27.18% over the past year, overperforming other diversified utility stocks by 39 percentage points.

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:

Energy Co Of Minas Gerais (NYSE:CIG) has an annual dividend yield of 10.05%, which is 5 percentage points higher than the diversified utility industry average of 4.9%. Energy Co Of Minas Gerais's dividend payout is not stable, having dropped more than 10% fourteen times in the last 10 years. Energy Co Of Minas Gerais's dividend has not shown consistent growth over the last 10 years.

Energy Co Of Minas Gerais's dividend payout ratio of 57% indicates that its high dividend yield is sustainable for the long-term.

Brookfield Infrastructure Partners (NYSE:BIP) has an annual dividend yield of 5.91%, which is 1 percentage points higher than the diversified utility industry average of 4.9%. Brookfield Infrastructure Partners's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Brookfield Infrastructure Partners's dividend has shown consistent growth over the last 10 years.

Brookfield Infrastructure Partners's dividend payout ratio of 486.1% indicates that its high dividend yield might not be sustainable for the long-term.

Avista (NYSE:AVA) has an annual dividend yield of 5.42%, which is 1 percentage points higher than the diversified utility industry average of 4.9%. 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% indicates that its high dividend yield is sustainable for the long-term.

Diversified utility stocks were down -0.73% in the last day, and down -1% over the last week.

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

Based on WallStreetZen's Valuation Score, the 3 most undervalued diversified utility stocks right now are:

Energy Co Of Minas Gerais (NYSE:CIG) is the most undervalued diversified utility stock based on WallStreetZen's Valuation Score. Energy Co Of Minas Gerais has a valuation score of 71, which is 37 points higher than the diversified utility industry average of 34. It passed 5 out of 7 valuation due diligence checks.

Energy Co Of Minas Gerais's stock has gained 1.4% in the past year. It has overperformed other stocks in the diversified utility industry by 13 percentage points.

Northwestern (NASDAQ:NWE) is the second most undervalued diversified utility stock based on WallStreetZen's Valuation Score. Northwestern has a valuation score of 43, which is 9 points higher than the diversified utility industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Northwestern's stock has dropped -11.59% in the past year. It has performed in line with other stocks in the diversified utility industry.

Black Hills (NYSE:BKH) is the third most undervalued diversified utility stock based on WallStreetZen's Valuation Score. Black Hills has a valuation score of 43, which is 9 points higher than the diversified utility industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Black Hills's stock has dropped -27.12% in the past year. It has underperformed other stocks in the diversified utility industry by -15 percentage points.