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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:

Black Hills (NYSE:BKH) 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 Black Hills (NYSE:BKH) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Black Hills (NYSE:BKH) has a Due Diligence Score of 37, which is equal to the diversified utility industry average of 37.

BKH passed 12 out of 38 due diligence checks and has average fundamentals. Black Hills has seen its stock return 0% over the past year, overperforming other diversified utility stocks by 3 percentage points.

Black Hills has an average 1 year price target of $66.00, an upside of 11.13% from Black Hills's current stock price of $59.39.

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 #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 Aes (NYSE:AES) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Aes (NYSE:AES) has a Due Diligence Score of 54, which is 17 points higher than the diversified utility industry average of 37.

AES passed 19 out of 38 due diligence checks and has strong fundamentals. Aes has seen its stock lose -28.92% over the past year, underperforming other diversified utility stocks by -26 percentage points.

Aes has an average 1 year price target of $13.50, an upside of 4.81% from Aes's current stock price of $12.88.

Aes stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Aes, 75% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 25% have issued a Sell rating, and 0% have issued a Strong Sell.

Otter Tail (NASDAQ:OTTR) 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 Otter Tail (NASDAQ:OTTR) is: Value: C, Growth: D, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

Otter Tail (NASDAQ:OTTR) has a Due Diligence Score of 43, which is 6 points higher than the diversified utility industry average of 37.

OTTR passed 15 out of 38 due diligence checks and has strong fundamentals. Otter Tail has seen its stock return 7.87% over the past year, overperforming other diversified utility stocks by 10 percentage points.

Out of 11 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 5.34%, which is 2 percentage points higher than the diversified utility industry average of 3.4%. 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 86.5% indicates that its high dividend yield is sustainable for the long-term.

Black Hills (NYSE:BKH) has an annual dividend yield of 4.52%, which is 1 percentage points higher than the diversified utility industry average of 3.4%. 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.

Brookfield Infrastructure Partners (NYSE:BIP) has an annual dividend yield of 4.13%, which is 1 percentage points higher than the diversified utility industry average of 3.4%. 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 3,340% indicates that its high dividend yield might not be sustainable for the long-term.

Diversified utility stocks were down -0.27% in the last day, and up 0.07% over the last week.

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

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 20 points higher than the diversified utility industry average of 37. It passed 4 out of 7 valuation due diligence checks.

Aes's stock has dropped -28.92% in the past year. It has underperformed other stocks in the diversified utility industry by -26 percentage points.

Avista (NYSE:AVA) 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.

Avista has a valuation score of 43, which is 6 points higher than the diversified utility industry average of 37. It passed 3 out of 7 valuation due diligence checks.

Avista's stock has dropped -3.3% in the past year. It has underperformed other stocks in the diversified utility industry by -1 percentage points.

Black Hills (NYSE:BKH) 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.

Black Hills has a valuation score of 43, which is 6 points higher than the diversified utility industry average of 37. It passed 3 out of 7 valuation due diligence checks.

Black Hills's stock has gained 0% in the past year. It has overperformed other stocks in the diversified utility industry by 3 percentage points.

50% of diversified utility stocks rated by analysts are a buy right now. On average, analysts expect diversified utility stocks to rise by 6.32% 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), 77.78% are rated C (Hold), 11.11% are rated D (Sell), and 11.11% are rated F (Strong Sell).