Best Utilities Stocks for Stability and Growth in 2025

From Nasdaq: 2025-05-21 08:00:00

Utilities stocks, like the Utilities Select Sector SPDR Fund (XLU), are up 9.3% in 2025, offering a total return of about 12% with a 2.76% dividend yield. These defensive stocks shine in uncertain times due to consistent consumer demand and regulatory benefits for both consumers and companies.

Constellation Energy (CEG) reported revenue of $6.79 billion, beating expectations, but had a slight miss on earnings per share. Despite this, the stock has risen 18% as the company secures long-term agreements to deliver nuclear power for data centers. CEG stock boasts over 30% growth in 2025 and a dividend yield of 0.75%.

NRG Energy (NRG) is up over 77% in 2025, one of the best S&P 500 performers, with a 1.1% dividend yield. Analysts are bullish on NRG’s diverse power portfolio as the company partners to build new power plants. While overbought, any pullback may offer a better entry point for investors.

Exelon Corp. (EXC) is a traditional utility down 6% in May due to a settlement with shareholders over federal bribery accusations. Despite the company’s strong earnings report, overshadowing news has kept stock growth at 18% in 2025 with a 3.6% dividend yield. EXC may offer growth potential in the next two quarters.

Utilities stocks offer a defensive play in volatile markets with potential for meaningful returns. Constellation Energy, NRG Energy, and Exelon provide compelling cases for balanced portfolio inclusion. As the sector benefits from structural demand and approaches record highs, investors should consider these names for long-term growth potential. 1. The stock market saw a significant drop today, with the Dow Jones Industrial Average falling 500 points due to concerns over rising inflation and interest rates.

2. A new study found that over 80% of Americans are struggling with debt, with the average household owing over $90,000 in various forms of debt.

3. The United Nations reported that over 20 million people in Yemen are facing starvation due to ongoing conflict and a lack of humanitarian aid reaching those in need.

4. The CDC announced that the flu season is expected to be severe this year, with a strain of the virus not covered by the current vaccine spreading rapidly across the country.



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