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Best Diversified Utility Stocks to Buy Now (2024)

Top diversified utility stocks in 2024 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:

Energy Co Of Minas Gerais (NYSE:CIG) is the top diversified utility stock with a Zen Score of 50, which is 12 points higher than the diversified utility industry average of 38. It passed 18 out of 38 due diligence checks and has strong fundamentals. Energy Co Of Minas Gerais has seen its stock return 9.21% over the past year, overperforming other diversified utility stocks by 10 percentage points.

Otter Tail (NASDAQ:OTTR) is the second best diversified utility stock with a Zen Score of 48, which is 10 points higher than the diversified utility industry average of 38. It passed 17 out of 38 due diligence checks and has strong fundamentals. Otter Tail has seen its stock return 21.25% over the past year, overperforming other diversified utility stocks by 22 percentage points.

Montauk Renewables (NASDAQ:MNTK) is the third best diversified utility stock with a Zen Score of 48, which is 10 points higher than the diversified utility industry average of 38. It passed 16 out of 33 due diligence checks and has strong fundamentals. Montauk Renewables has seen its stock lose -22.66% over the past year, underperforming other diversified utility stocks by -22 percentage points.

Montauk Renewables has an average 1 year price target of $7.00, an upside of 43.44% from Montauk Renewables's current stock price of $4.88.

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.

Out of 9 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 10.86%, which is 7 percentage points higher than the diversified utility industry average of 4.34%. 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 45.8% indicates that its high dividend yield is sustainable for the long-term.

Brookfield Infrastructure Partners (NYSE:BIP) has an annual dividend yield of 5.07%, which is 1 percentage points higher than the diversified utility industry average of 4.34%. 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 501% indicates that its high dividend yield might not be sustainable for the long-term.

Avista (NYSE:AVA) has an annual dividend yield of 4.83%, which is the same as the diversified utility industry average of 4.34%. 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 76.7% indicates that its high dividend yield is sustainable for the long-term.

Diversified utility stocks were down -0.04% in the last day, and up 0.4% 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 32 points higher than the diversified utility industry average of 39. It passed 5 out of 7 valuation due diligence checks.

Energy Co Of Minas Gerais's stock has gained 9.21% in the past year. It has overperformed other stocks in the diversified utility industry by 10 percentage points.

Sempra (NYSE:SRE) is the second most undervalued diversified utility stock based on WallStreetZen's Valuation Score. Sempra has a valuation score of 43, which is 4 points higher than the diversified utility industry average of 39. It passed 3 out of 7 valuation due diligence checks.

Sempra's stock has gained 6.49% in the past year. It has overperformed other stocks in the diversified utility industry by 7 percentage points.

Northwestern Energy Group (NASDAQ:NWE) is the third most undervalued diversified utility stock based on WallStreetZen's Valuation Score. Northwestern Energy Group has a valuation score of 43, which is 4 points higher than the diversified utility industry average of 39. It passed 3 out of 7 valuation due diligence checks.

Northwestern Energy Group's stock has dropped -9.94% in the past year. It has underperformed other stocks in the diversified utility industry by -9 percentage points.