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Best Diversified Utility Stocks to Buy Now (2026)

Top diversified utility stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% 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:

Aes (NYSE:AES) is the #1 top diversified utility stock out of 10 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

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

Aes (NYSE:AES) has a Due Diligence Score of 56, which is 14 points higher than the diversified utility industry average of 42.

AES passed 20 out of 38 due diligence checks and has strong fundamentals. Aes has seen its stock return 9.07% over the past year, overperforming other diversified utility stocks by 3 percentage points.

Montauk Renewables (NASDAQ:MNTK) is the #2 top diversified utility stock out of 10 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

The Component Grade breakdown for Montauk Renewables (NASDAQ:MNTK) is: Value: B, Growth: B, Momentum: C, Sentiment: B, Safety: D, Financials: D, and AI: C.

Montauk Renewables (NASDAQ:MNTK) has a Due Diligence Score of 49, which is 7 points higher than the diversified utility industry average of 42.

MNTK passed 16 out of 33 due diligence checks and has strong fundamentals. Montauk Renewables has seen its stock lose -51.57% over the past year, underperforming other diversified utility stocks by -57 percentage points.

Sempra (NYSE:SRE) is the #3 top diversified utility stock out of 10 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

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

Sempra (NYSE:SRE) has a Due Diligence Score of 43, which is 1 points higher than the diversified utility industry average of 42.

SRE passed 15 out of 38 due diligence checks and has strong fundamentals. Sempra has seen its stock lose -13.75% over the past year, underperforming other diversified utility stocks by -19 percentage points.

Sempra has an average 1 year price target of $94.06, an upside of 18.25% from Sempra's current stock price of $79.54.

Sempra stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Sempra, 70% have issued a Strong Buy rating, 10% have issued a Buy, 20% 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 7.28%, which is 3 percentage points higher than the diversified utility industry average of 4.04%. Energy Co Of Minas Gerais's dividend payout is not stable, having dropped more than 10% seventeen 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 84.4% indicates that its high dividend yield is sustainable for the long-term.

Avista (NYSE:AVA) has an annual dividend yield of 4.81%, which is 1 percentage points higher than the diversified utility industry average of 4.04%. 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 65.8% indicates that its high dividend yield is sustainable for the long-term.

Aes (NYSE:AES) has an annual dividend yield of 4.72%, which is 1 percentage points higher than the diversified utility industry average of 4.04%. 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 28.3% indicates that its high dividend yield is sustainable for the long-term.

Diversified utility stocks were up 0.16% in the last day, and up 0.28% 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 29, which is -15 points higher than the diversified utility industry average of 44. It passed 2 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates AES a Valuation Rating of "B".

Aes's stock has gained 9.07% in the past year. It has overperformed other stocks in the diversified utility industry by 3 percentage points.

Montauk Renewables (NASDAQ:MNTK) is the second 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.

Montauk Renewables has a valuation score of 71, which is 27 points higher than the diversified utility industry average of 44. It passed 5 out of 7 valuation due diligence checks.

Montauk Renewables's stock has dropped -51.57% in the past year. It has underperformed other stocks in the diversified utility industry by -57 percentage points.

Energy Co Of Minas Gerais (NYSE:CIG) 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.

Energy Co Of Minas Gerais has a valuation score of 71, which is 27 points higher than the diversified utility industry average of 44. It passed 5 out of 7 valuation due diligence checks.

Energy Co Of Minas Gerais's stock has dropped -12.73% in the past year. It has underperformed other stocks in the diversified utility industry by -18 percentage points.

40% of diversified utility stocks rated by analysts are a strong buy right now. On average, analysts expect diversified utility stocks to rise by 2.44% over the next year.

0% of diversified utility stocks have a Zen Rating of A (Strong Buy), 25% of diversified utility stocks are rated B (Buy), 62.5% are rated C (Hold), 12.5% are rated D (Sell), and 0% are rated F (Strong Sell).